The first 6 questions refer to problem 1 in chapter 18 of your text. For this problem, assume that apple growers keep a constant amount of capital, such as equipment 1. How will the apple-s-day law affect the demand curve for apples? It will shift left 1. Suppose that the president proposes a new law It will shift right It won't shift at all aimed at reducing healthcare costs: All Americans are 2, How will the apple-a-day law affect the equilibrium price? It will go up It will go down It won't change at all required to eat one apple daily. 3. How will the apple-a-day law affect the demand curve for apple pickers? a. How would this apple-a-day law affect the It will shift left It will shift right It won't shift at all demand and equilibrium price of apples? 4. How will the apple-a-day law affect the equilibrium wage for apple pickers? b. How would the law affect the marginal product It will go up It will go down It won't change at all and the value of the marginal product of apple 5. How will the law affect the value of the marginal product of labor for apple pickers? Can't tell pickers? VMPL will rise VMPL will fall VMPL will not change c. How would the law affect the demand and 6. If capital doesn't change, how will the apple-a-day law affect marginal product of labor for apple pickers? equilibrium wage for apple pickers? MPL will rise MPL will fall MPL will not change Can't tellQuestions 7-23 refer to problem 3 in chapter 18. 7. What is the marginal product of labor for the 1" day of labor? 0 2 3 4 5 6 What is the marginal product of labor for the 4th day of labor? 8 10 9. What is the marginal product of labor for the S" day of labor? 10 10. In part b., What is the value of the marginal product of labor for the 1" day of labor? $10 $30 $50 $70 $100 $130 $190 $250 1 1. What is the value of the marginal product of labor for the 4th day of labor? S7' $10 $30 $50 $60 $70 $100 $130 $190 $250 Suppose that labor is the only input used by a perfectly competitive firm. The firm's production function is as follows: Days of Labor Units of Output 12. What is the value of the marginal product of labor for the 5th day of labor? 0 days O units $7 $10 $30 $50 $60 $70 . $100 $130 $190 $250 1 13, What are on the axes for your graph of the labor market? Price and Quantity Wage and the Quantity of Labor Costs and Benefits N 13 14. How can you tell how many days of labor the firm should hire from the graph? 19 A W a. Where the wage intersects the VMPL curve 25 b. Where the demand curve intersects the VMPL curve c. Where the demand curve intersects the y-axis 28 15. How many days of labor should the firm hire if the wage is $100/day of labor? 29 0 2 Can't tell 29 16. How many days of labor should the firm hire if the wage is $70/day of labor? 2 Can't tell a. Calculate the marginal product of each additional worker. 17. How many days of labor should the firm hire if the wage is $60/day of labor? b. Each unit of output sells for $10. Calculate the 0 Can't tell value of the marginal product of each worker. 18. How many days of labor should the firm hire if the wage is $40/day of labor? Compute the demand schedule showing the 0 4 - 5 Can't tell number of workers hired for all wages from zero 19. How many days of labor should the firm hire if the wage is $30/day of labor? to $100 a day. 2 6 Can't tell d. Graph the firm's labor-demand curve. 20. How many days of labor should the firm hire if the wage is $10/day of labor? e. What happens to this demand curve if the price of 2 Can't tell output rises from $10 to $12 per unit? 21. How many days of labor should the firm hire if the wage is $0/day of labor? 4 Can't tell 22. What happens to the demand curve for labor if the price of output rises to $12/unit? It shifts left It shifts right move left along the Demand curve move right along it 23. What is the value of the marginal product of labor for the 4" day of labor in part c.? $7 $10 $30 $36 $60 $70 $72 $84 $100 SISOThe final 2 questions refer to Chapter 19, problem 1 (in Problems and Applications). 24. What is the opportunity cost of taking an internship? Long hours with little pay Income from another job not taken Future career opportunities 25. If you were to compare the earnings later in life of workers who had worked as interns and those who had taken higher paying jobs, what would you expect to find? Interns earn more than others Interns earn less than others Interns earn the same as others 1. College students sometimes work as summer interns for private firms or the government. Many of these positions pay little or nothing. a. What is the opportunity cost of taking such a job ? b. Explain why students are willing to take these jobs. c. If you were to compare the earnings later in life of workers who had worked as interns and those who had taken summer jobs that paid more, what would you expect to find