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V1 2) 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
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2) 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*60.20E, 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 0. Illustrate the effects of a wage decrease to $16/hr 8:: how many workers will ACS employ at this new wage ' d. Calculate the producer surplus for ACS's labor demandStep by Step Solution
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