# Economic

Suppose that labor is the only input used by a perfectly competitive firm that can hire workers for \$50 per
day. The firm’s production function is as follows:
Days of Labor/Units of Output:
0/0, 1/7, 2/13, 3/19, 4/25, 5/28, 6/29, 7/29

c. Compute the demand schedule showing the number of workers hired for all wages from zero to \$100 a day.
How Would this be done.

e. What happens to this demand curve if the price of output rises from \$10 to \$12 per unit?
Wouldn't the demand curve shift downward.

for c) you need more information, you need the price of the output. Can you assume the price is \$10 per unit as suggested in e.?

Assuming output can be sold at 10 per unit, 1 worker can make \$70 of output, 2 can make \$130 (change=\$60), 3 can make \$190 (change=\$60), and so on. Tada, graph the changes, and you have the firm's demand curve for workers. 100-70 hire zero, 70-60 hire 1, 60-30 hire 4, 30-20 hire 5, 20-00 hire 6.

e) if output price rises, firms will want to produce more, sow they will hire more labor, demand shifts outward.

Thank you for the information.

1. 👍 0
2. 👎 0
3. 👁 392
1. 23

1. 👍 0
2. 👎 0
posted by 123

## Similar Questions

1. ### economics

Suppose that for the firm below, the goods market is perfectly competitive. The market price of the product the firm produces is \$4 at each quantity supplied by the firm. What is the amount of labor that this profit-maximizing

asked by Anonymous on April 16, 2012
2. ### Microeconomics

The labor demand curve of a purely competitive seller: What exactly is your question? Is it something like: what is the slope (elasticity) of the demand for labor labor faced by a producer who sells in a perfectly competitive

asked by Anonymous on October 31, 2006
3. ### economics

Complete the following table for the firm below which is selling its product in a perfectly competitive market and hiring labor in a perfectly competitive labor market. MARGINAL WORKERS TOTAL MARGINAL PRODUCT REVENUE HIRED PRODUCT

asked by Anonymous on February 22, 2012
4. ### Economics

For the following characteristic say whether it describes a perfectly competitive firm, a monopolistically competitive firm, monopoly firm, or neither. a. Has marginal revenue less than price. I would think this would be neither.

asked by Sally on December 5, 2006
5. ### economics

A monopoly firm is different from a competitive firm in that A. there are many substitutes for a monopolist's product while there are no substitutes for a competitive firm's product B. a monopolist's demand curve is perfectly

asked by Anonymous on March 21, 2012
6. ### Need help Reviewing Managerial Economics

just need help in reviewing my answers...they are all true/false questions..THANKS!!! 1. A principal-agent problem occurs when managerial decisions are inconsistent with the firm’s revenue maximizing objective. False 2. A firm

asked by Sarah on December 12, 2006
7. ### Managerial Economics--Help!

I just need help in reviewing my answers...they are all true/false questions..THANKS!!! 1. A principal-agent problem occurs when managerial decisions are inconsistent with the firm’s revenue maximizing objective. False 2. A firm

asked by Sarah on December 11, 2006

I just need an answer check on these true/ false questions, PLEASE: 1. A principal-agent problem occurs when managerial decisions are inconsistent with the firm’s revenue maximizing objective. False 2. A firm making less than a

asked by Dylan on December 14, 2006
9. ### Managerial Economics

1. A principal-agent problems occur when managerial decisions are not consistent with the firm's shareholders' interests. T 2. A firm making more than a normal profit may still be experiencing an economic loss. T 3. An inferior

asked by Charles on May 13, 2015
10. ### microeconomics

A monopsonistic firm, as compares to a perfectly competitive firm, pays _____ wage and hires _____ labor.

asked by sheila on August 18, 2007

More Similar Questions