Hw6 - AECO 301 Intermediate Macroeconomics Spring 2010...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
AECO 301 Intermediate Macroeconomics Spring 2010 Instructor: Yangyi Shan Reminder: final exam schedule: Monday May 10 – 1pm-3pm in LC 2. Homework Assignment 6 Due Day: May 04, 2010 at the beginning of lecture Instructions: Please write your name, student ID on the first page. Please show your work. Please put your answers in the order of the questions Please staple your homework 1. (20 points) A firm believes that the relationship between the real wage it pays and the effort exerted by its workers is given by the following table. Real Wage    Effort      (E)     10 20 11 24 12 27 13 29 The marginal product of labor for this firm is given by MPN = E (100 - N )/9 , where E is the effort level and N is the marginal product of labor. (a.) If the firm can pay only one of the 4 real wage levels shown in the table, what real wage will it pay? How many workers will it employ? (b) Suppose that a big influx of workers enters the town, willing to work at a real wage of 10. How would that change your answer above?
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    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.

    Student Picture

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

  • Left Quote Icon

    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.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    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.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern