Question
Amazonian Cheap Supplies (ACS) has recently built a new distribution hub near Smallville. This hub can easily house 10,000 workers. ACS's short-run demand for labor
Amazonian Cheap Supplies (ACS) has recently built a new distribution hub near Smallville. This hub can easily house 10,000 workers. ACS's short-run demand for labor can be modeled by: VMPE = 4*6-0.20E, measured in thousands of workers. Answer the following
a. If the prevailing market wage is $18/hr, what is the optimal number of workers to employ & the average price ACS sells its goods
b. Illustrate part a, showing the VMPE, wage, & proper axis
c. Illustrate the effects of a wage decrease to $16/hr & how many workers will ACS employ at this new wage
d. Calculate the producer surplus for ACS's labor demand
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Reform Of The International Monetary System An Asian Perspective
Authors: Masahiro Kawai, Mario B Lamberte, Peter J Morgan
1st Edition
4431550348, 9784431550341
