3 different workers can produce tables that are sold at a price of $200 each for a carpenter shop. Worker A can produce 1 table every day, using $40 in materials and equipment Worker B can produce 1 table every 2 days, using $40 in materials and equipment Worker C can produce 1 table every day, using $80 in materials and equipment. a) Assuming the market for workers is competitive, what should be the daily salary for each worker? Worker A: $ per day Worker B: $ per day Worker C: $ per day b) If a union declares that workers should be paid at least $100 per day, what happens? Worker(s) and get hired at the above rates, while is not c) If workers have no other employment opportunities available around, and are willing to work at a subsistence rate of $50 per day (and any less than that they choose to move away from the city), what would be the wage paid to each worker? $

3 different workers can produce tables that are sold at a price of $200 each for a carpenter shop. Worker A can produce 1 table every day, using $40 in materials and equipment Worker B can produce 1 table every 2 days, using $40 in materials and equipment Worker C can produce 1 table every day, using $80 in materials and equipment. a) Assuming the market for workers is competitive, what should be the daily salary for each worker? Worker A: $ per day Worker B: $ per day Worker C: $ per day b) If a union declares that workers should be paid at least $100 per day, what happens? Worker(s) and get hired at the above rates, while is not c) If workers have no other employment opportunities available around, and are willing to work at a subsistence rate of $50 per day (and any less than that they choose to move away from the city), what would be the wage paid to each worker? $

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the film can sell output in the perfectly competitive market where it operates. What is the value of the marginal product at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage is 12, what is the films profit maximizing level of employment?
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Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the firm can sell output in the perfectly competitive market where it operates. a. What is the value of the marginal product at each level of labor?b. If the firm operates in a perfectly competitive labor market where the going market wage is $12, what is thefirm’s profit maximizing level of employment?
Taco King produces tacos. The market for tacos is perfectly competitive, and the price is $2.00 a taco. The labor market is competitive, and the wage rate is $16.00 a day. The table shows part of the workers' total product schedule. If the price rises to $4.00 a taco, how many workers will Taco King hire? de in 5 % Taco King will hire 6 9 workers. M & 7 ||| 8 O Workers 2 3 4 5 6 # Tacos per day 20 32 42 50 54 Next mpt tact Us M
Value of Marginal Product Labor 123 1 2 4 5 6 Marginal Product of Labor 10 8 7 5 3 1 Price of Product $$$$$$ $4 $4 $4 $4 $4 $4 VMPL Calculate the VMP, at each level of labor If the Firm operates in a Perfectly Competitive Labor Market where the going market wage is $12, what is the profit maximizing level of employment?
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