c. Now determine the firm's demand curve for labor, assuming that it is selling in an imperfectly competitive market and that, although it can sell 17 units at $2.20 per unit, it must lower product price by 5 cents in order to sell the marginal product of each successive labor unit. Instructions: For marginal product, enter your answers as a whole number. For all other answers, round your answers to 2 decimal places. Imperfectly Competitive Market Units of Labor Total Product Marginal Product Product Price Total Revenue Marginal Revenue Product 0 0 1 17 2 31 3 43 4 53 5 60 6 65 Compare this demand curve with the one derived in a competitive market. Which curve is more elastic? (Click to select)

c. Now determine the firm's demand curve for labor, assuming that it is selling in an imperfectly competitive market and that, although it can sell 17 units at $2.20 per unit, it must lower product price by 5 cents in order to sell the marginal product of each successive labor unit. Instructions: For marginal product, enter your answers as a whole number. For all other answers, round your answers to 2 decimal places. Imperfectly Competitive Market Units of Labor Total Product Marginal Product Product Price Total Revenue Marginal Revenue Product 0 0 1 17 2 31 3 43 4 53 5 60 6 65 Compare this demand curve with the one derived in a competitive market. Which curve is more elastic? (Click to select)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

If two painters can paint 200 square feet of wall in an hour, and three painters can paint 275 square feet, what is the marginal product of the third painter?
A small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 100 cookies per day, the cost of the average worker is $32 per day, and the price of a cookie is $1.00. Is the firm maximizing profit? The firm O A. is not maximizing profit because the marginal revenue product of labor is greater than the wage. O B. is not maximizing profit because the marginal revenue product of labor is less than the wage. O C. is maxinmizing profit because the marginal product of labor is greater than the wage. O D. is not maximizing profit because the price of the output is not equal to the wage. O E. is not maximizing profit because the marginal product of labor is greater than the wage.
Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
Oc. The marginal product of labour is rising as hours of study increase. O d. The marginal product of labour is zero beyond 15 hours. Imagine that you work for 40 hours per week at the wage rate of £10 an hour. Your free hours are defined as the number of hours not spent in work per week, which in this case is 24 hours x 7 days - 40 hours = 128 hours per week Suppose now that your wage rate has increased by 100%. If you want to keep your total weekly income constant, then: Select one or more: a. Your total number of hours will fall by 25%. O b. Your total number of hours will fall by 50%. O C. You will work 25 hours per week. O d. Your free time will increase by 25%. ASUS ZenBook
The price of labor is $20 per unit and the price of capital is $40 per unit. Optimal input combination OutputL* 10 20 30 40 K* 8 12 LTC LAC LMC 20 $__ $ ___ xx $24 32 50 48 2,040. When output is 20 units, how many units of labor will the firm use? Select one: а. 50 b. 24 C. 22 d. 30