An economic downturn has caused the labor demand to decrease from DO to D1. In the short-run what will be the new wage and level of employment? S 40 35 30 Wage Rate ($) 25 20 15 10 5 0 DO DI 5 10 15 20 25 30 35 40 Quantity of Labor (Q)
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- 2. Graphing demand for labor and computing the optimal quantity of labor demanded A company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $330 per day for each worker it hires. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor Output Marginal Product of Labor Value of the Marginal Product of Labor (Number of workers) (Units of output) (Units of output) (Dollars) 20 1. 20 19 2 39 18 57 15 72 12 84 On the following graph, use the blue points (circle symbol) to plot the firm s labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first…Wage Rate ($) 44 40 36 32 222 28 24 20 16 12 8 4 The Market for Labor 0123 4 5 6 7 Quantity of Labor 8 MRP 9 MRC 'S 10 11Private sector employmnet in Palestine in 2019 constitutes a. roughly 50 percent of total employment O b. more than 75 percent of total employment С. about 10 percent of total employment d. Between 60 - 70 percent of total employment
- 16 The weekly salary of sales staff of a department store are shown below. "f" is the frequency or the number of staff members earning the stated salary (x). Salary Frequency x f $590 7 680 6 940 29 980 10 1540 2 1880 1 The mean weekly salary is _______. a $868 b $913 c $961 d $1,012value of average product of labor be 25 dollars.John works for a government agency in California making $70,000 per year. He is being transferred to a branch office in Tennessee. The salary reduction associated with transfer is 11%. The Cost of Living Index (similar to consumer price index or equipment price index) in California is 132 whereas the Cost of Living Index in Tennessee is 95. a. How much extra income does John made as a result of the reduced Cost of Living? b. What is the adjusted salary of John based on the Cost of Living?
- A perfect competitor charges a price of $30. The first worker he would hire would have a marginal physical product of 20, the second worker he would hire would have a marginal physical product of 18, the third worker would have a marginal physical product of 16, and the fourth worker would have a marginal physical product of 14. (a) How many workers would he hire if the wage rate were $540? worker(s) hired How much would his wage bill be? $ wage bill (b) How many workers would he hire if the wage rate were $470? worker(s) hired How much would his wage bill come to? $ wage bill.nts per question) 1a0od it produces is constant, than it NAME: NT A QUIZ ABC Limited sells its product in a perfectly competitive market for a price of $15 1. per unit and hires workers at a daily wage of $75. Labor is the only factor cost, and the firm is currently earning profits. If ABC hires one more worker and output increases by 5 units per day, the firm's profits will a. decrease by $5 b. decrease by $75 c. increase by $75 d. increase by $15 e. remain unchanged.15) In a competitive labour market, firms will hire labour up to the point where themarginal revenue product of labour equals(a) total labour cost.(b) the wage rate.(c) the marginal product.(d) the price of the product.
- Automated for the people Automation risk by job type, % 10 20 30 40 50 60 Food preparation Construction Cleaning Driving Agricultural labour Garment manufacturing Personal service Sales Customer service Business administration Information technology Science & engineering Healthcare Hospitality & retail management Upper management & politics Teaching Source: OECD Economist.com Looking at the chart above Describe how technology is projected to affected the demand and supply of workers. Which industries are project to replace workers with machines?The main office of a large bank has an annualturnover of 500 office workers. As an employmentofficer of this bank, discuss the sources you woulduse in obtaining replacement employees.12 120 160 200 240 280 Units of labor (millions of workers) Refer to Figure above and find the following of labor equal to 1) At wage rate $3, there is a million people. 2) The productivity of workers decreases. If the equilibrium wage rate change from 3) If this firm pays the efficient wage of $12. to ? www Wage rate ($) 3.