What will happen to the number of workers hired by the firm

Assignment Help Microeconomics
Reference no: EM131923230

Problem

The firm's elasticity of demand for labor is -0.5. The firm sells its output at $20 per unit, and the wage rate is $15 per hour. Suppose the firm experiences an increase in productivity such that at every level of employment its output is 200 units hour greater than before. What will happen to the number of workers hired by the firm?

Reference no: EM131923230

Questions Cloud

What is the short-run elasticity of this firms labor demand : The firm has 15 machines in place and the wage rate rises from $10 per hour to $20 per hour. What is the short-run elasticity of this firm's labor demand?
Water balloon travel horizontally : If shot at the angle you calculated in part (a), how far will the water balloon travel horizontally?
Why these factors are important in shaping the seo efforts : In considering your classmates' postings, discuss why these factors are important in shaping the SEO efforts.
Calculate the maximum height above the roof reached : Calculate the maximum height above the roof reached by the rock, the magnitude of the velocity of the rock just before it strikes the ground
What will happen to the number of workers hired by the firm : The firm's elasticity of demand for labor is -0.5. The firm sells its output at $20 per unit. What will happen to the number of workers hired by the firm?
Provide at least two examples of a socially responsible act : Provide at least two examples of a socially responsible act that you have found in your organization or in one with which you are familiar.
Should fish be produced : Fish, a remake of the successful Broadway musical, Cats (for fish-lovers), will take one year to produce and will require that the production company make.
What is the impact of the minimum wage on employment : What is the impact of the minimum wage on employment? Does it matter which of the two curves (supply or demand) is "more" downward sloping? Why?
What is the present value of the cash flow pattern : You have been offered the opportunity to invest in a project that will pay $1,678 per year at the end of years one through three and $14,075 per year.

Reviews

Write a Review

Microeconomics Questions & Answers

  How might the pricing policies for sony ebooks change

The following table shows book sales in the U.S. during 2004. With what you know about the impact of the Internet, what are some of the key differences you would expect to see if you had the equivalent table in the year 1994? If possible, suppo..

  Question 1nbspthe table sets out the demand and supply

question 1nbspthe table sets out the demand and supply schedules for banana.pricenbspdollars per boxnbspquantity

  Decreasing or constant returns to scale

Decreasing or constant returns to scale

  A monopolist sells its product in two separate markets

a monopolist sells its product in two separate markets aampb. the demand functions for the two markets are pa 30000 -

  Explain the paradox of saving

Explain the paradox of saving. Now suppose the economy is characterised and what will happen to investment? What will happen to public saving?

  Graph demand facing the situation note that this needs

a. each individual determinant analyzed for your situation with examples applicable to your situation and research

  Terms and concepts that focus on international trade

Simple terms and concepts that focus on international trade and foreign exchange rates.

  Interpreted the regression after running the regression

You have been assigned the task of creating a multiple regression equation of at least three variables that explains Microsoft's annual sales. Consider using a time series of data of at least 10 years.

  Regression model of demand for durables consumers

Will there be any difference in the set of variables used in the regression model of demand for durables consumers (cars, appliances, furniture) and a regression model of the demand for "goods FMCG" (meals, beverages, personal care products)? Explain..

  Write the conditions of efficient resolution to this

my neighborsare college students who sometimes have late-night parties. assume that the nuisance cost of these parties

  Effects of massive treasury bill sale by fed in open market

Draw a supply-demand diagram of the Federal funds market which illustrates the effects of a massive Treasury bill sale by the Fed in the open market.

  Briefly describe the plot of a disaster movie

Hypothesize how the four functions of money would be missed - Explain what the immediate effects would be on.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd