PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Question
Chapter 8, Problem 8.1CC
To determine
The number of technicians hired by BCC at the wage rate of $35,000 per year.
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Students have asked these similar questions
The below table shows the output associated with each quantity of labor, assuming the level of capital is fixed. Assume the price of a unit of output is $2 and the wage is equal to $11. How many workers would the firm hire? Show your work.
Number of Workers
Output per hour
0
0
1
8
2
14
3
18
4
20
To save money, some fast food chains are now having their customers place their orders at computer kiosks. Will the kiosks necessarily reduce the total number of workers employed in the fast food industry?
(a) Why does the labour demand curve slope downwards?
(b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100.
# Workers
Output
1
20
2
36
3
48
4
56
5
60
6
62
(i) If the wage rate is $1,000 a week, how many workers should the factory hire?
(ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now?
(iii) Calculate the number of garments produced in each of the two cases above.
Question 4
Using your knowledge and understanding of supply and demand analysis to graph the following and explain your graph:
(a) an increase in labour productivity.
(b) an increase in preference for work.
(c) the trade union withdraws labour through a strike.
Chapter 8 Solutions
PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
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Similar questions
- (a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above.arrow_forwardFor Question 53, and 54, use the table below. The table provides information about output (Q) the firm produces, revenues in a perfectly competition firm using factor of production labor FP (L) which represents workers. For example, a total of 2 workers produces 15 units per-hour. TR is total revenue. MR is marginal revenue, MP is marginal product and MRP is marginal revenue product. Given this information, how much is the MP for worker (L) for worker 2 and 3. P Q 0 15 O 5 and 5 O 35 and 25 07 and 5 O Band 7 TR 0 100 MR MP MRP FP (L) 0arrow_forward(a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table. The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above.arrow_forward
- The marginal product of labor for a firm is given by: MPL = 112 - 3H, where H is the number of hours they hire workers to work. For example, the marginal product of the first hour of labor would be 112 - 3*1, and the marginal product of the second hour of labor would be 112 - 3*2, and so on. If the market wage is $18 per hour, how many hours of labor will this firm hire? Round your final answer to two decimal places.arrow_forwardThe maximum number of workers that a firm would hire isarrow_forwardBlast! Turns out child workers are not as productive as adults that I was basing my decision off of. Basically, they are two minutes slower across the board: # of Concession Stand Employees Average Wait Time (Minutes) Average Wait Time (Minutes) with Child Employees 1 18 20 2 8 10 3 6 8 4 5 7 5 7 9 At the daily rate of $12.50 per child worker per day, how many should I hire? (If you are doing this correctly you are thinking with marginal analysis, and if so, might be wondering if this is a trick question. It is not, it is quite straight forward precisely because of marginal analysis!)arrow_forward
- Give typing answer with explanation and conclusion 3. The general assumption is that the demand for labour usually goes hand in hand with the demand for product. That is, the higher the demand for product, the higher will be the demand for labour. Is this always true? Use specific examples from your readings and models discussed on the course to facilitate your answer. (800 words only)arrow_forwardWhat is it called when each additional worker hired contributes successively smaller amounts of output?arrow_forwardDolls are fabricated in a process with two resources. The first resource has a capacity of 1.5 dolls per hour. The capacity of the second resource is 0.99 dolls per hour. The first resource has 7 workers and the second resource has 9 workers. Demand for this process is 1.1 dolls per hour. Wages are $24 per hour. Instruction: Round your answer to two decimal places. What is the cost of direct labor (in $)? per unitarrow_forward
- If there are diminishing returns to labor, then as more workers are hired the total amount produced by all of the workers will decrease. True Falsearrow_forwardClick to see additional instructions Consider a firm that exists for one period. The value of labour's marginal product is given by: VMP =Px MP, where P is the price of output, and MPL = 20 - 0.1L. The wage rate is $20. Assume that there are hiring and training costs of $40 per worker. If the firm expects the price of output to be $25, what is the optimal level of employment? Important note: Your answer needs to be rounded to 2 decimal places (e.g. 1.23). Any intermediate results should be rounded to at least 4 decimal places. Failure to do so may result in your answer not being accepted as a correct one.arrow_forwardHigh Tech, Inc. produces plastic chairs that sell for $10 each. The following table provides information about how many plastic chairs can be produced per hour. Number of Workers Chairs Produced per Hour 1 10 2 18 3 24 4 28 5 30 Please enter your answers for Value of the Marginal Product as numerical answers rounded to the nearest dollar (ie. 30 or $30, not "Thirty dollars." When answering how many workers the firm will hire just enter a number from 0-5 and nothing else (ie. 4 not "Four" or "Four workers"). What is the "Value of the Marginal Product" (VMP) for the third worker? What is the Value of the Marginal Product (VMP) for the fifth worker? How many workers will this firm hire if the hourly wage rate for workers is $70/hour How many workers will this firm hire if the hourly wage rate for workers is $50/hourarrow_forward
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