Econ 339 Fall 2009 Problem Set 3_1

# Econ 339 Fall 2009 Problem Set 3_1 - Econ 339 Fall Quarter...

This preview shows pages 1–2. Sign up to view the full content.

Econ 339 Fall Quarter 2009 Problem Set 3 - Due Date: 10/19/2009 Solve the following Problems. Show your work. 1. Problems: 3-1, 3-4, 3-7, 2. Problems: 4-6 3. (a) What happens to the long-run demand curve for labor if the demand for the firm’s output increases? (b) What happens to the long-run demand curve for labor if the price of capital increases? 4. Suppose the labor supply curve is upward sloping and the labor demand curve is downward sloping. The study of economic trends over a particular time period reveals that the wage recently fell while employment levels rose. Which curve must have shifted and in which direction to produce this effect? 5. Chicken Hut faces perfectly elastic demand for chicken dinners at a price of \$6 per dinner. The Hut also faces an upward sloped labor supply curve of E = 20w – 120, where E is the number of workers hired each hour and w is the hourly wage rate. Thus, the Hut faces an upward sloped marginal cost of labor curve of MC E = 6 + 0.1E .

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern