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Number of Unskilled Workers Quantity of Blu-ray Players produced 0 0 15 35 48 58 63 67 68 Assume that XYZ Company produces blu-ray players
Number of Unskilled Workers Quantity of Blu-ray Players produced 0 0 15 35 48 58 63 67 68 Assume that XYZ Company produces blu-ray players as shown in the short run production function in the chart above. XYZ can sell all the blu-ray players it produces at a market price of $60 each and can hire all the unskilled labor it needs at a wage rate of $120 per day per worker. Assume also that labor is the only variable input. A) Using the specific information above, draw a correctly labeled graph of the XYZ Company's current supply curve for unskilled labor. B) What is XY Z's profit-maximizing output level? Explain. c) Suppose that XYZ Company is the first company to use a new technology that increases the productivity of its workers. =Oy W s L R e Howwill the new technology impact XYZ's demand for labor? How will the new technology affect the wage paid to XYZ's unskilled workers
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