5. Using a labour-leisure model, show how the introduction of time and a half for overtime (i.e.the firm must pay a hourly wage 50% higher for any hours of work that exceed 8 hours perday) affect the hours work decision and the level of satisfaction. Assume the worker wasworking 10 hours per day prior to the government regulation.

The labor-leisure choice model identifies a person's wage rate and income as the major economic…

Answered: 5. Using a labour-leisure model, show…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Weekly production for a potter varles with the number of workers employed, as shown in the table below. Number of workers 1 2 3 4 5 Total product (units of pots) Marginal product Average product 0 90 360 486 540 435 90 90 a. Enter the values of marginal product, when adding each worker, in the table above. Include a minus sign (-) when entering any negative values.
60 50 40 30 20 10F 2 3 4 Number of Workers Employed per Week Refer to Figure 7-1. If this figure represents Total Product per week, what is the marginal product of the fourth worker hired each week? Quantity of Bicycles Per Week
7. Use a graph and derive the labor supply curve of a worker. Explain in detail.
Reference: Use the following table to answer questions 1 - 4. Labor Quantity 1 20 50 3 90 4 125 5 140 6 150 (1)The marginal productivity of the third worker is (a) 30 (b) 40 (c) 50 (d) 90 (2)The average productivity of the fifth worker is (a) 20 (b) 28 (c) 30 (d) 140 (3)Marginal productivity is maximized with the worker. (a) second (b) third (c) fourth (d) sixth (4)Average productivity is maximized with the worker. (a) second (b) third (c) fourth (d) sixth
4 factors that may determine the skill of a worker
Number of Workers Hourly Wage Marginal Factor Cost Marginal Revenue Product 10 $5.00 5.10 $6.10/hr $8.70/hr 12 5.20 6.30/hr 7.60/hr 13 5.30 6.50/hr 6.50/hr 14 5.40 6.70/hr 5.40/hr 15 5.50 6.90/hr 4.30/hr According to the information in the table above, the twelfth worker would increase the hourly profit by $0.20 $1.10 $1.30 $2.40 E $5.20 B. C.
Draw a graph explaining how a typical worker chooses how many hours to allocate to work. When non-labor income increases, what happens to hours worked? Represent both examples using graph(s).
i Saved Help Save & Exit Sul Instructions: In parts a and b, enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Calculate marginal physical product (MPP). Labor Output(Q) MPP 0 0 10 2 22 3 30 36 5 38 6 37 b. When does marginal productivity first diminish? When worker is hired.
John works for a government agency in California making $70,000 per year. He is being transferred to a branch office in Tennessee. The salary reduction associated with transfer is 11%. The Cost of Living Index (similar to consumer price index or equipment price index) in California is 132 whereas the Cost of Living Index in Tennessee is 95. a. How much extra income does John made as a result of the reduced Cost of Living? b. What is the adjusted salary of John based on the Cost of Living?
Daily production for Pot-Works, a flowerpot maker, varies with the number of workers employed, as shown in the table below. a. Fill in the table. Include a minus sign (-) for any negative values entered below. (1) Labour (workers per day) (2) (3) (4) Total Product Marginal Product| Average Product (pots per day) (pots per day) (pots per day) 1 80 2 220 405 4 440 425 b. In which employment range is marginal product rising? falling and positive? negative? Marginal product is rising when the first, second, and third workers are hired and total product in this range is rising fairly quickly Marginal product is falling and positive when the fourth worker is hired v, and total product in this range is rising at a slower pace v Marginal product is negative when the fifth worker is hired , and total product in this range is falling C. Draw the total product curve on one set of axes and the average product and marginal product curves on he other set of axes below. In the left graph, use the…
What is Job Match Quality? a. The marginal product associated with the match of a particular worker with a particular job. b. The average product associated with the match of a particular worker with a particular job. c. The total product associated with the match of a particular worker with a particular job. d. The joint product associated with the match of a particular worker with a particular job.
Below are the overtime hours (O) worked by 3 employees an an Office. Calculate var(O). (3 significant digits in final answer) Worker Jim Pam Dwight Overtime Hrs. 10 3 Answer:

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