Sly's Subs is a sub sandwich shop in Strathmore, AB. It sells 6 subs in a...

 

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Sly's Subs is a sub sandwich shop in Strathmore, AB. It sells 6" subs in a competitive market for $6.25 each. Sly pays his employees the equilibrium wage rate of $12.00 per hour for an 8-hour shift. Complete parts a through d. a) The table below shows Sly's production function for subs for an 8-hour shift. Fill in the table. L 0 1 2 3 4 Q 0 51 5 MP 31 16 12 MRP 0 WAGE 120 6 112 (Type integers or decimals rounded to two decimal places as needed. Do not include the $ symbol in your answers.) b) How many workers will Sly hire? Sly will hire worker(s). (Type a whole number.) c) Suppose the province imposed a minimum wage rate of $13.75 per hour. How many workers would Sly hire now? Sly will hire worker(s). (Type a whole number.) d) Assume that the supply curve is a typically upward-sloping line. Sketch the labour market for Sly's Subs on the hourly wage rates before and after the minimum was imposed. For simplicity, the demand curve is shown as a linear function. 1.) Using the line drawing tool, plot the supply curve on the diagram and label the line properly. 2.) Using the line drawing tool, plot the minimum wage line on the diagram and label the line properly. 3.) Using the point drawing tool, indicate the original equilibrium point and indicate the point that represents the amount of labour hired at the new minimum wage. Respectively label these points 'e,' and 'e₂. 18.00- 17.00- 16.00 15.00 14.00 13.00-1 12.00 11.00 10.00 9.00- 8.00- 7.00- 6.00- 5.00- 4.00 3.00- 2.00 1.00- 0.00- W 0 1 N. 2 13 Demand for Labour 4 5QL Sly's Subs is a sub sandwich shop in Strathmore, AB. It sells 6" subs in a competitive market for $6.25 each. Sly pays his employees the equilibrium wage rate of $12.00 per hour for an 8-hour shift. Complete parts a through d. a) The table below shows Sly's production function for subs for an 8-hour shift. Fill in the table. L 0 1 2 3 4 Q 0 51 5 MP 31 16 12 MRP 0 WAGE 120 6 112 (Type integers or decimals rounded to two decimal places as needed. Do not include the $ symbol in your answers.) b) How many workers will Sly hire? Sly will hire worker(s). (Type a whole number.) c) Suppose the province imposed a minimum wage rate of $13.75 per hour. How many workers would Sly hire now? Sly will hire worker(s). (Type a whole number.) d) Assume that the supply curve is a typically upward-sloping line. Sketch the labour market for Sly's Subs on the hourly wage rates before and after the minimum was imposed. For simplicity, the demand curve is shown as a linear function. 1.) Using the line drawing tool, plot the supply curve on the diagram and label the line properly. 2.) Using the line drawing tool, plot the minimum wage line on the diagram and label the line properly. 3.) Using the point drawing tool, indicate the original equilibrium point and indicate the point that represents the amount of labour hired at the new minimum wage. Respectively label these points 'e,' and 'e₂. 18.00- 17.00- 16.00 15.00 14.00 13.00-1 12.00 11.00 10.00 9.00- 8.00- 7.00- 6.00- 5.00- 4.00 3.00- 2.00 1.00- 0.00- W 0 1 N. 2 13 Demand for Labour 4 5QL

Answer rating: 100% (QA)

Part a To fill in the production function table for Slys Subs we need to calculate Quantity Q Marginal Product MP and Marginal Revenue Product MRP for each level of labor L The price P of each sub is ... View the full answer