Business, 27.08.2019 01:10 alyonaprotopopova

There are 1000 consumers in an economy that each have the same utility function given by u (c, l) = 2√c − 4(1 − l)^2 where c is their consumption and l is the percentage of time they devote to leisure. a single firm serves the market with production function y = √12000l^1/2k^1/2. the firm cannot choose its capital stock, which is fixed at k = 256. you can assume the price level is equal to 1 so real and nominal wages are equivalent. a. solve for an individual consumer’s labor supply as a function of the real wageb. what is the total supply of labor hours for the economy in one day as a function of the real wage (hint: remember you have just solved for labor supply as a percentage of one consumer’s time. there are 1000 consumers and each one has 24 hours they can work)c. solve for the firm’s labor demand as a function of the real waged. what is the equilibrium real wage and equilibrium total number of hours worked per day? how many hours does each consumer work per day? e. what is total output for the economy? (note: your numbers won’t necessarily come out very nicely for these questions - round to 2 decimal places)f. the government wants to increase the equilibrium real wage, so it mandates a minimum wage of $15 per hour. what happens to labor supply and demand? how many total hours will be worked? what is total output? g. now the government gets rid of the minimum wage and tries a wage subsidy instead (i. e. they pay the consumer some amount for every hour worked). how large does the subsidy have to be in order to reach $15/hr? (don’t forget that the equilibrium wage will change with the subsidy) now how many hours will be worked and what is total output?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 07:50

The questions of economics address which of the following ? check all that apply

Answers: 3

Answer

Business, 22.06.2019 07:50

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?

Answers: 2

Answer

Business, 22.06.2019 07:50

Budget in this final week, you will develop a proposed budget of $150,000 for the first year of the program and complete the final concept paper for the proposed program due for senior management review. the budget should identify the program's anticipated expenses for the year ahead. budget line items should be consistent with the proposed program and staffing plan. using the readings for the week, the south university online library, and the internet, complete the following tasks: create a proposed budget of $150,000 for the first year of the proposed program including the cost for personnel, supplies, education materials, marketing costs, and so on in a microsoft excel spreadsheet. you may transfer your budget to your report. justify the cost for each item of the proposed budget in a budget narrative.

Answers: 2

Answer

Business, 22.06.2019 08:10

The sec has historically raised questions regarding the independence of firms that derive a significant portion of their total revenues from one audit client or group of clients because the sec staff believes this situation causes cpa firms to

Answers: 3

Answer

You know the right answer?

There are 1000 consumers in an economy that each have the same utility function given by u (c, l) =...

Questions