MiniExam2Essay_Key

MiniExam2Essay_Key - Mini Exam 2 Name: _ Section: _...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Mini Exam 2 Name: _________________________________ Section: ________ Recitation Leader: __________________ 1. The production technology of a firm is given in the table below. Number of workers Units of output MPN 0 0 1 20 20 2 36 16 3 48 12 4 56 8 5 60 4 6 60 0 a. Find (on the table) the marginal product of labor (MPN) for each level of employment. b. Assume that the price of a unit of output is $10. Calculate the number of workers that will be hired if the nominal wage rate = $130. Calculate the number of workers the firm will hire if the nominal wage is $210. Calculate the number of workers that the firm will hire if the nominal wage is $50. If P=$10 and W=$130, w=13, so N=2. If P=$10 and W=$210, w=21, so N=0. If P=$10 and W=$50, w=5, so N=4. c. Graph the labor demand curve of the firm. /6 /3 /4 w N 20 16 12 8 4 1 2 3 4 5 6
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. Suppose that an economy’s aggregate production function is given by Y = 2 · A · N – ½N 2 . The marginal product of labor for this production function is MPN = 2 · A – N.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

MiniExam2Essay_Key - Mini Exam 2 Name: _ Section: _...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online