What are the new equilibrium wage and quantity of labor

Assignment Help Microeconomics

Reference no: EM131919382

Problem

Suppose that fast-food chains start using healthier ingredients, increasing the demand for fast food and therefore for food-service workers, as shown in Figure 16P-3.

a. What are the new equilibrium wage and quantity of labor in the fast-food industry?

b. Assume that the skills required of a sales clerk at a retail store are similar to those required of workers at a fast-food restaurant. If workers are completely indifferent between fast-food jobs and retail-sales jobs, what will be the wages for sales clerks?

1522_Figure 16P-3.jpg

Reference no: EM131919382

Questions Cloud

What will happen to the average age in the population : Over time, what will happen to the average age in the population? Over time, what will happen to the size of the workforce?

What is the project npv if the tax rate : The annual operating cash flow is $90,141 and the cost of capital is 10% What is the project's NPV if the tax rate is 30%?

What are total labor earnings at the equilibrium wage : What is the equilibrium wage rate prior to the law being enacted? What are total labor earnings at the equilibrium wage?

Macrs depreciation allowances : What is the book value of this asset at the end of year 5 given the following MACRS depreciation allowances, starting with year one:

What are the new equilibrium wage and quantity of labor : Suppose that fast-food chains start using healthier ingredients. What are the new equilibrium wage and quantity of labor in the fast-food industry?

What is the operating cash flow : That is, the depreciation each year will be $181,384/13. Assuming a tax rate of 27%, what is the operating cash flow?

Would a small private university be in the same category : In which of the service categories would you put a large state university? Why? Would a small private university be in the same category? Why, or why not?

What audiences will you need to consider in your response : What audiences will you need to consider in your response? For each of these audiences, which medium or media should you use to send your message?

Macrs depreciation allowances : A project requires $467,074 of equipment that is classified as 7-year property. What is the book value of this asset at the end of year 3

User Account

All Pages