Dolph, Jimbo, and Kearney are the only individuals participating in the very particular labor market for ‘protective’ services. Dolph''s labor supply is given by ????????=-46+0.87424·????, where ???? is the hours worked per week and ???? is the hourly wage rate. Jimbo and Kearney''s labor supply functions are represented by ????????=-35+1.42842·???? and ????????=-39+1.32464·????, respectively. (50 points)
a.) First, determine the reservation wage for each of these individuals, showing every step of your work. Please round to the second decimal point.
b.) Second, if the market wage is $37, how many hours does each individual supply? And, at which wage rate would each individual supply 40 hours per week? Please round to the second decimal point.
c.) Third, provide the market labor supply equation. Note that this is more difficult than it may initially seem, as the proper conditions need to be fully stated.
d.) Lastly, in a separate figure, graph the market labor supply curve, labeling everything you can. [Another quadrant may be used as needed for the intercept.]

Posted Date: 9/26/2017 12:32:00 AM | Location : Canada

Ask an Expert

Related Discussions:- calculate long-run optimal amounts of workers and ma, Assignment Help, Ask Question on calculate long-run optimal amounts of workers and ma, Get Answer, Expert's Help, calculate long-run optimal amounts of workers and ma Discussions

Write discussion on calculate long-run optimal amounts of workers and ma
Your posts are moderated

Write your message here..

Related Questions

Application of disquilibriam analysis, question #Minimum 100 words accepted... question #Minimum 100 words accepted#History of cobweb theory

Market supply of labour, use a graphical illustration to describe briefly w... use a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labour on an increase in immigration..

Economics 304 , 1. Implicit and explicit revenues minus implicit and explic... 1. Implicit and explicit revenues minus implicit and explicit costs equals: A. accounting profit. B. economic profit. C. zero profit. D. implicit profit. 2. A business owner mak

Price elasticity of demand, Suppose the price elasticity of demand for extr... Suppose the price elasticity of demand for extra dark chocolate truffles is -6. Hold other things constant , if price for Extra Dark Chocolate truffles is decrease by 3%, what wil

Monopoly, what is multi-plant monopoly? what is multi-plant monopoly?

#3, Consider a two-period economy with a single commodity (say leisure): x1... Consider a two-period economy with a single commodity (say leisure): x1 is the con- sumption of leisure in period 1, and x2 is the consumption of leisure in period 2. When Peter ev

Cheese at the price floor, Assume that the U.S. Department of Agriculture (... Assume that the U.S. Department of Agriculture (USDA) administers the price floor for cheese, set at $0.17 per pound of cheese. (The price floor is formally set at $16.10 per hundr

Discount rate, Discount Rate The term discount rate relates to ... Discount Rate The term discount rate relates to business valuations. It is the rate applied to a future torrent of making an income or cash flow to measure its represen

What is optimal choice of consumer according to behavior, What is optimal c... What is optimal choice of consumer according to consumer behavior? Consumer's Optimal Choice: In the fundamental problem of preference maximization, the set of affo

Monetary accounts, what are monetry accounts? what are monetry accounts?