Question 12Consider a workplace that has two workers who can work as a team. Each worker can put in effort worker 1's effort is labelled el and worker 7's as e2. These effort chores are madesimultaneously. Output of the team is Bel+ 4e2. Each worker bears the cost of their effort and has a utility of Ui-wi-ei, where i-1.2 and wi is the wage that the worker ves Nowassume that the effort of each worker is unobservable but team output can be contracted on. In fact, assume that the balanced-budget nule holds in that each worker receives half of teamoutput as their wage. What are the efforts that each workers put in?Oel-3, e2-3)O None of the other answers are correct.O el 2, e2-1O el-1,e2-1O e1-4, 2-2

We have to take optimal effort for each worker

Consider a workplace that has two workers who can work as a team. Each worker can put in effort worker 1's effort is labelled et and worker 7's an e2. These effort c simultaneously. Output of the team is Bel+ 4e2. Each worker bears the cost of their effort and has a unity of Us e, where i 1.2 and v assume that the effort of each worker is unobservable but team output can be contracted on. In fact, assume that the balanced-budget rule holde output as their wage. What are the efforts that each workers put in? O e1"-3,2-3 O None of the other answers are correct. O e1-2. e2"-1 O e1-1,e2"-1 O e1"-4, e2"-2

Consider a workplace that has two workers who can work as a team. Each worker can put in effort worker 1's effort is labelled et and worker 7's an e2. These effort c simultaneously. Output of the team is Bel+ 4e2. Each worker bears the cost of their effort and has a unity of Us e, where i 1.2 and v assume that the effort of each worker is unobservable but team output can be contracted on. In fact, assume that the balanced-budget rule holde output as their wage. What are the efforts that each workers put in? O e1"-3,2-3 O None of the other answers are correct. O e1-2. e2"-1 O e1-1,e2"-1 O e1"-4, e2"-2

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: Earnings And Discrimination

Section: Chapter Questions

Problem 3PA

See similar textbooks

Similar questions

Total # of Pots Produced Per Day 0, Number of Workers ut of 1 6. 13 18 21 5 23 6. 22 From the above table, the diminishing marginal return begins with. employee. Select one: O A. Second O B. Fifth O C. Fourth O D. First O E. Third MacBook Air F10 & * 5 7 8 9. 9| 0 Y 01 ق K J .つ 6 ).
Geralt works for Stregobor as a witcher earning $87,000 a year. He decides to quit his job andbecome a freelance witcher. As a freelancer, he spends $7000 on herbs and weapons. Insurancecosts him $1000 a year. He pays himself $145,000 as a salary. His total revenues for the year are$191,000. Based on this information, what were his economic costs as a freelance witcher?
In calelting the unemplament . "di d worke whearettity seeking employmet are 22 ta cluded. e incaded. e treated the s partti worker. di ed t determine the sie of the laber force
The figure depicts the efficiency wage equilibrium of a worker and a firm. According to this figure: Isocosts Worker's best response curve 0.7---- 0.5+ -- 4 6 10 12 Hourly wage, $ At B, the MRS is higher than the MRT. O The firm is able to increase its profits from those attained at A by inducing the worker to exert higher effort in return for a higher wage. O The firm would maximise its profits by paying an hourly wage that is $6 above the worker's reservation wage. O At C, the marginal rate of substitution (MRS) between higher wage cost and higher effort exceeds the marginal rate of transformation (MRT). Effort per hour 近

Explain how the wage can adjust to balance thesupply and demand for labor while simultaneouslyequaling the value of the marginal product oflabor.
Table 18-1 Days of Labor Units of Output Marginal Product VMPL 10 10 200 18 160 25 140 30 100 33 60 34 20 Refer to Table 18-1, Soppose that the firm pays its workem S00 per day. Each unit of output sells for $20 How many days of labor shouald the firm hire 04
The following graph represents the Marginal Revenue Product for workers at Ollie's O-Rings: S/worker/hour $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 0. 40 60 80 100 20
You are HR di, ector for a growing law firm in Tampa, Florida, which cu."ently has need of writing 30 legal briefs every hour. Each of your company's attorneys can write on average five briefs per hour. You are consid ring hiring four paralegals to shoulder the load; each pa alegal is a bit slower than the attorneys and can write on average only 2.5 briefs per hour. You scan the current wages in the Tampa area and notice that the attorneys in your company earn the local occupational median wage of $41.64 per hour, but that the prospective four paralegals will likely want to get paid their local occupational median wage of $23.66 per hour. a. Would /our company save money in the writing of the 30 legal briefs by hiring the four paralegals and firing some attorneys? b. The local Tampa Paralegal Union has observed that the Bureau of Labor Statistics projects that employment of paralegals over the next decade will rise considerably faster than the employment of lawyers…
Otherthingsbeingconstant,howwillthefollowinginfluence the hourly earnings of employees? Explain your answer. The employee must work the midnight to 8:00 a.m. shift. The job involves split shifts (work three hours, off two hours, work three additional hours, and so on). Theemployerprovideslow-costchildcareservicesonthe premises. The job is widely viewed as prestigious. The job requires employees to move often from city to city. The job requires substantial amounts of out-of-town travel.
Number Of Output Workers 1 50 110 300 4 450 590 665 700 8. 725 710 10 705 According to the above table, At what point does diminishing retums set in? O 4th labor 3rd labor O 1st labor O 2nd labor
A job is a contract between a O A. bank; household; capital OB. manufacturer; retailer; entrepreneurial OC. firm; household; labor OD. bank; firm; capital 2 and a 1₁ for providing services.
Fringe benefits:a. As you might have suspected, employee nonwage (fringe) benefits make up a muchlarger percentage of labor costs in the United States today than they did a few generationsago (refer to Table 3.1 in the textbook). Fringe benefits as a form of labor compensationis also very unique to the U.S. and other developed nations. Do you think that thegrowing fringe benefit share of labor costs has made the level of employment moreresponsive or less responsive to changes in labor demand over the ups and downs in theoverall economy? In other words, has it given the employers of labor more or lessflexibility as they try to adapt to continuously changing economic conditions?