Reference no: EM131018459
Practice Questions 9
Question 1:
Data for a pumpkin farmer who can hire pumpkin pickers at $9 per day is provided below:
|
# of pickers
|
Revenue from pumpkin sales
|
|
1
|
$30
|
|
2
|
$48
|
|
3
|
$62
|
|
4
|
$72
|
|
5
|
$80
|
|
6
|
$84
|
If the farmer maximizes profits, how many pumpkin pickers should he hire?
Question 2:
Two firms, A and B, operate in different but competitive industries. They both require labor with the same level of ability and skills and the labor market is also perfectly competitive. We know that the marginal product of labor for firm A is 8 and the marginal product of labor at firm B is 12. In addition, firm A faces a price of $6 per unit of output it produces. What should be the price at which firm B sells its product if both firms are maximizing their profits?
Question 3:
Suppose that East Ten is one of the shoemakers in the perfectly competitive market for shoes. The market demand for shoes is given by P = 100 - QD and the market supply is given by P = QS. The market for shoes is in long run equilibrium. East Ten employs workers in a perfectly competitive labor market which is characterized by the demand equation W = 1000 - 3L and the supply equation W = 2L. (Note: W stands for the weekly wage rate and L stands for the quantity of workers.) Identify the equilibrium wage rate and the number of workers employed by East Ten if its marginal product of labor is given by MPL = 30 - L.
Question 4:
Suppose that there is an automobile manufacturer and a catering firm in town which use labor with similar skill levels in production. Furthermore suppose that these two firms are the only employers in this particular labor market and they act as perfectly competitive firms in the labor market. The catering firm has the following labor demand equation: W = 100 - 5L while the automobile manufacturer has a labor demand curve given by W = 200 - 5L. If the residents supply labor according to the supply curve W = L + 10 , what is the equilibrium wage? What is the equilibrium quantity of workers employed? How many workers does each firm employ?
Multiple Choice Questions:
1. If both the output market and the labor market are perfectly competitive, then the firm should set ___________ to maximize profits.
a. P = W.MC
b. W = MP
c. MP = MC
d. W = MP.P
e. MP.P = ATC
2. Ed's Barber Shop is a small perfectly competitive firm that hires workers in a perfectly competitive labor market. Ed charges $10 per haircut, which is the prevailing market price. Marginal product of each worker is 2 haircuts per hour. What should Ed be paying as the hourly wage rate?
3. The labor supply curve shifts to the right when
- population increases.
- workers realize they would rather stay at home and watch TV.
- the wage rate increases.
- workers realize watching TV does not pay off.
- the number of firms increases.
|
What is the gain db
: What is the Gain dB? I thought dB=20 log (Vout/Vin) This would lead me to believe that it should be 20 log (1.99/1) = 5.98 dB...I am being told the answer is -0.44 dB. What is my problem
|
|
State the newtons first law of mation as used in physics
: State the newtons first law of mation as used in physics?
|
|
Calculate price changes for each commodity
: Complete the table. Compute the inflation rate from 1995 to 2010. Calculate price changes for each commodity from 1995 to 2010 measured as percentages
|
|
What you want to find out from your audience
: For this section, you will organize a session where you will lead students in a discussion of your media program through their own eyes. Your group will need to build a discussion protocol that includes what you want to show during the session and..
|
|
What is the equilibrium wage
: What is the equilibrium wage? What is the equilibrium quantity of workers employed? How many workers does each firm employ - What should be the price at which firm B sells its product if both firms are maximizing their profits?
|
|
How the dealership should approach the problem
: Create a PowerPoint presentation to use in the management meeting. How the dealership should approach the problem and attract more female customers.
|
|
Write an analysis paper on windham
: Write an analysis paper on Windham where you consider the following elements: How does Wyndham's stakeholder orientation create a strategic marketing advantage?
|
|
A /28 block of addresses
: A /28 block of addresses is granted to a small organization. Assuming that one of the valid addresses in the network is 205.16.37.39, determine the first and the last address in the block in this network block and therefore show the classless interdo..
|
|
What is the joint profit-maximizing price
: What is the joint profit-maximizing price - What profit would each store make if it set this price and What price will each firm charge in the equilibrium for this game?
|