Prob solutions Essay Example

Prob solutions Paper The elasticity of labor demand facing union B is given by: (33,000 30,000) 33, coo MO. 45 (15 20) 15 Lion B, therefore, is more likely to organize as I-OASIS < 1-21. 2. Consider a firm for Which production depends on two normal inputs, labor and capital, with prices w and r, respectively. Initially the firm faces market prices of w -6 and r -4. These prices then shift tow -4 and r- 2. (a) In which direction will the substitution effect change the firm's employment and capital stock? Prior to the price shift, the absolute value of the slope ofthe isocost line (vv/r) was 1 After the price shift, the slope is 2. In other words, labor has become relatively more expensive than capital. As a result, there will be a substitution away from labor and towards capital (the substitution effect). (b) In which direction will the scale effect change the firms employment and capital stock? Because both prices fall, the marginal cost of production falls, and the firm will want to expand. The scale effect, therefore, increases the demand for both labor and capital (as both are normal inputs (c) Can we say conclusively vetches the firm will use more or less labor? More or less capital? The firm will certainly SE more capital as the substitution and scale effects reinforce each other in the direction of using more capital. The change in labor hired, however, will depend on whether the substitution or the scale effect for labor dominates. 3. Suppose a firm purchases labor in a competitive labor market and sells its product in a competitive product market. The firms elasticity of demand for labor is [10. 4. Suppose the wage increases by S percent. What Will happen to the number of workers hired by the firm? What will happen to the marginal productivity of the last worker hired by the firm? We will write a custom essay sample on Prob solutions specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Prob solutions specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Prob solutions specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Given the estimates of the elasticity of labor demand and the change in the wage, we have that CIA [10. 4 00. 4 . Thus, the firm hires 2 percent fewer workers. Furthermore, because the labor market is competitive, the marginal worker is paid the value of his marginal product. As the product market is competitive, we also know that the output price does not change so that the marginal productivity Of the marginal worker increases by 5 percent. 4. Suppose the hourly wage is $10 and the price of each unit of capital is $25. The price Of output is constant at SO per unit. The production function is = Eek h, so that the marginal product of labor is MME = h Fifth current capital stock is fixed at 1 ,600 units, how much labor should the firm employ in the short run? How much profit will the firm earn? The fin-ens labor demand curve is it marginal revenue product of labor curve, VAMP, which equals the marginal productivity to labor, MME, times the marginal revenue of the firms product. But as price is fixed at SO, MR. = 50. Thus, we have: 1600 1 ,000 VAMP MRS.C 50 Now, by setting VAMP = w and solving for E, we find that the optimal number Of workers for the firm to hire is 10,000 workers. The firm then makes = 4,000 units of output and earns a profit of 1 10,000 ($10) = 560,000. 5. Which one of Marshals rules suggests why labor demand should be relatively inelastic for public school teachers and nurses? Explain. Public school teachers and nurses both help produce a good that is price inelastic in the United States, at least, society will always purchase education and health care. Likewise, education and healthcare do not face strong competition trot substitute goods. Finally, the production processes tort education and healthcare both require teachers and nurses. And though these talents can be substituted for to some degree by other forms of labor or capital, both are crucial to the production process. Thus, other inputs (computers, doctors, etc. ) cannot readily replace teaching or nursing services, and therefore the supply elasticity of other factors of production is not very elastic for teachers or nurses. For all three of these rules, therefore, the labor demand for public school teachers is likely similar to the labor demand for nurses.

Free Essays on Edna

Edna Pontellier is a respectable woman of the late 1800s who not only acknowledges her sexual desires, but also has the strength and courage to act on them. Breaking through the role appointed to her by society, she discovers her own identity independent of her husband and children. Many of Kate Chopin’s other stories feature passionate, unconventional female protagonists, but none presents a heroine as openly rebellious as Edna. The details and specifics of Edna’s character are key to understanding the novel and its impact on generations of readers. At the beginning of the novel, Edna exists in a sort of semi-conscious state. She is comfortable in her marriage to LÃ ©once and unaware of her own feelings and ambitions. Edna has always been a romantic, enamored with a cavalry officer at a very young age, in love with a man visiting a neighboring plantation in her teens, and infatuated with a tragedian as a young woman. But she saw her marriage to LÃ ©once as the end to her life of passion and the beginning of a life of responsibility. Although she expected her dreams of romance to disappear along with her youth, her fantasies and yearnings only remain latent, re-emerging on Grand Isle in the form of her passion for Robert Lebrun. The people Edna meets and the experiences she has on Grand Isle awaken desires and urges for music, sexual satisfaction, art, and freedom that she can no longer bear to keep hidden. Like a child, Edna begins to see the world around her with a fresh perspective, forgetting the behavior expected of her and ignoring the effects of her unconventional actions. Yet Edna is often childish as well as childlike: she harbors unrealistic dreams about the possibilities of a wild adulterous romance without consequences, and she fails to consider the needs and desires of anyone but herself. Her flagrant disregard of reality is revealed when she mocks Robert’s apprehensions about adultery, and when she leaves her chi... Free Essays on Edna Free Essays on Edna Edna Pontellier is a respectable woman of the late 1800s who not only acknowledges her sexual desires, but also has the strength and courage to act on them. Breaking through the role appointed to her by society, she discovers her own identity independent of her husband and children. Many of Kate Chopin’s other stories feature passionate, unconventional female protagonists, but none presents a heroine as openly rebellious as Edna. The details and specifics of Edna’s character are key to understanding the novel and its impact on generations of readers. At the beginning of the novel, Edna exists in a sort of semi-conscious state. She is comfortable in her marriage to LÃ ©once and unaware of her own feelings and ambitions. Edna has always been a romantic, enamored with a cavalry officer at a very young age, in love with a man visiting a neighboring plantation in her teens, and infatuated with a tragedian as a young woman. But she saw her marriage to LÃ ©once as the end to her life of passion and the beginning of a life of responsibility. Although she expected her dreams of romance to disappear along with her youth, her fantasies and yearnings only remain latent, re-emerging on Grand Isle in the form of her passion for Robert Lebrun. The people Edna meets and the experiences she has on Grand Isle awaken desires and urges for music, sexual satisfaction, art, and freedom that she can no longer bear to keep hidden. Like a child, Edna begins to see the world around her with a fresh perspective, forgetting the behavior expected of her and ignoring the effects of her unconventional actions. Yet Edna is often childish as well as childlike: she harbors unrealistic dreams about the possibilities of a wild adulterous romance without consequences, and she fails to consider the needs and desires of anyone but herself. Her flagrant disregard of reality is revealed when she mocks Robert’s apprehensions about adultery, and when she leaves her chi...