Stephanie produces earrings. She sells each pair of earrings for $5. The table below shows how many pairs of earrings can beproduced, depending on the number of workers Stephanie hires. Fill in the "Total Revenue" and "Marginal Revenue Product" columnsusing the information given. Assume this is a perfectly competitive market.Instructions: Enter your answers as a whole number.Stephanie's Earring Shop and RevenuesLabor Total Product (pairs(workers)of earrings)Marginal RevenueMarginal Product(pairs of earrings)00Price(dollars)$5Total Revenue(dollars)Product (dollars)$0120205$234145346125457115566956726577535

Total Revenue is calculated as: Total Product × Price.Marginal Revenue Product is calculated as:…

Answered: Stephanie produces earrings. She sells…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 1P

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Amanda owns a small bakery in the perfectly competitive pastry industry. She is considering whether to hire an additional pastry chef. The wage rate for pastry chefs is $1,000 per week; the marginal product of an additional pastry chef is 1,000 pastries per week; and the unit price of pastries is $1.25. Amanda should: O hire the additional pastry chef. not hire the additional pastry chef. raise the price of the pastries. O Not enough information is given to answer the question.
The table below shows data for the production of Avocados for an individual firm operating in an imperfectly competitive market. Number of workers Number of Avocados Marginal Revenue 0 0 22 10 150 21 20 270 20 30 360 19 40 420 18 50 450 17 Given this data, complete the table: Quantity of Avocados Marginal Product of Labor (MPL) Marginal Revenue Product of Labor (MRPL) 0 - - 10 20 30 40 50
Stephanie produces earrings. She sells each pair of earrings for $5. The table below shows how many pairs of earrings can be produced, depending on the number of workers Stephanie hires. Fill in the "Total Revenue" and "Marginal Revenue Product" columns using the information given. Assume this is a perfectly competitive market. Instructions: Enter your answers as a whole number. Stephanie's Earring Shop and Revenues Labor Total Product (pairs of (workers) 8 1 2 3 4 5 6 7 earrings) 0 28 44 58 71 82 90 95 Marginal Product (pairs of earrings) 28 16 14 13 11 8 5 Price (dollars) $5 5 5 5 5 5 5 5 Total Revenue (dollars) $0 Marginal Revenue Product (dollars) $
The following table shows the production function for a company. This company sells its product in a perfectly competitive product market at a price of $4 each and hire labor in a perfectly competitive labor market at a wage of $450 per week. Calculate the Marginal MarginalProduct of the 1st, 2nd, and 3rd. Calculate the Value ofMarginal Product of the 1st, 2nd, and 3rd How many workers should it hire? How do you know? Explain your answer. Show formulas and some of your calculations.
WAGES (Dollars perteacher) Suppose that the states pass a law that prohibits home schooling and requires that all children attend public schools. Assume home- schooled children were being taught by parents who would not become public school teachers as a result of the new legislation. The following graph depicts the labor market for public school teachers. The market for public school teachers is perfectly competitive. Adjust the graph to show the effect of this legislation on the market for public school teachers. Note: Select and drag one of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. The wages for teachers will QUANTITY (Teachers) Supply Demand Demand Supply ? and the quantity of teachers in the classroom will
Stephanie produces earrings. She sells each pair of earrings for $8. The table below shows how many pairs of earrings can be produced, depending on the number of workers Stephanie hires. Fill in the "Total Revenue" and "Marginal Revenue Product" columns using the information given. Assume this is a perfectly competitive market. Instructions: Enter our answers as a whole number. Stephanie’s Earring Shop and Revenues Labor Total Product Marginal Product Price Total Revenue Marginal Revenue Product (workers) (pairs of earrings) (pairs of earnings) (dollars) (dollars) (dollars) 0 0 - $8 $0 - 1 25 25 8 ____ $ _____ 2 38 13 8 _____ _____ 3 49 11…
Coldbox Corporation hires its workers in a perfectly competitive labor market and produces and sells frozen peas in a perfectly competitive product market. The market price for frozen peas is $4 per bag. The table below shows Coldbox' short-run production of frozen peas. Labor is the only variable input. Coldbox Corporation's fixed cost is $500. Number of Workers Bags of frozen peas 0 0 1 60 2 140 3 250 4 320 5 380 6 400 a) If the wage is $200 per worker, identify the profit-maximizing number of workers for Coldbox. Explain using marginal analysis. b) If the price of frozen peas decreases by $2 per bag, would the number of workers hired by Coldbox be more than, less than, or equal to the number of workers you identified in part (a) ? Explain. c) Suppose that Coldbox hires workers from a monopsonistic labor market. Would the wage be higher, lower, or equal to the equilibrium wage in a perfectly competitive market? Explain.
Question 1 The market for drones is perfectly competitive. Labor is the only variable input. The fixed cost is $500. Based on the information in the table below, what is the Marginal Product of Labour when Q-300? Enter a number only, drop the $ sign. Wage rate $100 per unit of Labour Quantity of Quantity of Labour Output 2 49 119 300 15 26 51 400
Suppose Fred produces 500 litres of milk every day with 10 workers. The price of milk is $12 per litre, and each worker is paid $550 daily. If the marginal product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred increase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.
Which of the following determines the firm's demand curve for labor? a.The size of the labor force b.The marginal product of labor c.The total product of labor d.The average product of labor
Suppose that labor is the only input used by a perfectly competitive firm. The firm’s production function is as follows: Number of Workers: 0, 1, 2, 3, 4, 5, 6, 7 Units of Output: 0, 7, 13, 19, 25, 28, 29, 29 a. Calculate the marginal product for each additional worker. b. Each unit of output sells for $10. Calculate the value of the marginal product of each worker. c. Compute the marginal profit if the wage is $100 a day. 2. Your enterprising uncle opens a sandwich shop that employs 7 people. The employees are paid $12 per hour, and a sandwich sells for $6. If your uncle is maximizing his profit, what is the value of the marginal product of the last worker he hired? What is that worker’s marginal product?
In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number. Marginal Resource Total Labor Units of Labor Total Product Wage Rate Cost (Labor) Cost 10 400 $9 11 416 12 12 430 15 13 442 18 14 452 21 15 460 24

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