SQ5_LaborMarketsAK

Number of workers 0 1 2 3 4 5 6 number of pairs

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

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

Unformatted text preview: any’s hourly output of socks varies with the number of workers hired, as shown below: Number of Number of Pairs Workers of Socks 0 1 2 3 4 5 6 0 20 35 45 50 53 55 a. If socks sell for $6 a pair, and the competitive market wage is $15 per hour, how many workers should Susie hire? b. If the price of socks falls to $5 a pair and the competitive market wage is $15, how many workers will Susie hire? a. They key to this problem is to notice that the additional revenue associated with producing another pair of socks is $5 (the price of $6 minus the $1 for the material). Susie will hire 5...
View Full Document

This note was uploaded on 02/13/2014 for the course ECON 2 taught by Professor Kim during the Winter '08 term at UCSD.

Ask a homework question - tutors are online