Question: Please answer this question with explanation Suppose a rm's hourly marginal product of labor is given by MPN = A (200 N) a) IfA =

Please answer this question with explanation

Suppose a rm's hourly marginal product of labor is given by MPN = A (200 N) a) IfA = 0.2 and the real wage rate is $10 per hour, how mud1 labor will the rm want to hire? b) Suppose the real wage rate rises to $20 per hour. How mud1 labor will the rm want to hire? c) Wiih the real wage rate at $10 per hour, how much labor will the rm want to hire if A rises to 0.5? Suppose the marginal product of labor in the economy is given by MPN = 200 0.5M while the supply of labor is 100 + 4w a) Find the market-clearing real wage rate b) What happens if the government imposes a minimum wage of 40? Is there involuntary unemployment? c) What happens if the government imposes a minimum wage of 60? Is there involuntary unemployment
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
