Assume that the quantity of envelopes licked per hour by Sticky Gums, Inc., is 11eb5bc8_eba4_ba05_bcf8_b9297d799d4f_SM2615_11 where L is the number of laborers hired per hour by the firm. Assume further that the envelope-licking business is perfectly competitive with a market price of $0.01 per envelope. The marginal product of a worker is given by 11eb5bc8_eba4_ba06_bcf8_d58554cd032d_SM2615_11 a. How much labor would be hired at a competitive wage of $10? $5? $2? Use your results to sketch a demand curve for labor. b. Assume that Sticky Gums hires its labor at an hourly wage of $10. What quantity of envelopes will be licked when the price of a licked envelope is $0.10? $0.05? $0.02? Use your results to sketch a supply curve for licked envelopes.

Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

النسخة 12الرقم المعياري الدولي: 978-1133189022

Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

النسخة 12الرقم المعياري الدولي: 978-1133189022

تمرين 25

Assume that the quantity of envelopes licked per hour by Sticky Gums, Inc., is

where L is the number of laborers hired per hour by the firm.
Assume further that the envelope-licking business is perfectly competitive with a market price of $0.01 per envelope. The marginal product of a worker is given by

a. How much labor would be hired at a competitive wage of $10? $5? $2? Use your results to sketch a demand curve for labor.
b. Assume that Sticky Gums hires its labor at an hourly wage of $10. What quantity of envelopes will be licked when the price of a licked envelope is $0.10? $0.05? $0.02? Use your results to sketch a supply curve for licked envelopes.

التوضيح

موثّق

The demand curve for labor is given as: ...