When asked to illustrate please show graph
1) A firm has a new technology called the ambi-dig-3000, that allows a worker to put one device on each hand simultaneously, allowing a worker to easily dig with both hands. The hourly rate of labor is $20/hr& the each ambi-dig- 3000 costs $2/hr in wear-n-tear. Answer the following questions a. Classify the type of inputs a worker \& the ambi-dig-3000 are to each other, the perfect ratio b/w them, \& its generic isoquant curve b. If each preferred ratio could produce 2 ditches/hr \& the hourly budget is $192, how many ditches could be dug within 1 hour? What is the optimal number of workers and ambi-dig-3000s to employ c. If the hourly wage dropped to $12/hr, what would be the new ontimal quantity of ditches, number of workers, \& ambi-dig-3000s to employ for 1 hour d. EXTRA CREDIT: Briefly explain the substitution effect, if any, between a worker \& the ambidig-3000, 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 = 460.20E, 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 3) Please evaluate this statement using your economic knowledge \& answer the following Long-Run Growing Pains: "Billy-Bob is looking to grow his company of Burgers \& Fries. He's currently bound to a kitchen lease that will soon expire. His employees are protected under minimum wage and his production process is heavily reliant on labor. BB is looking for a new, bigger kitchen but runs a rather slim budget and is sensitive to wages and rental rates. However, he spares no dime when it comes the quality of his food. There's nothing comparable to his burgers." a. As BB's Burgers \& Fries moves from the short-run to the long-run, elaborate on his potential level of wage sensitivity b. If the minimum wage were to increase for burger flippers, illustrate this labor market, highlighting the effects BB's company would have given this change c. EXTRA CREDIT: What's the potential penalty if BB decides to pay his workers less than minimum wage 4) There are three distinct geographic regions of Baldur; North, East, \& West. All have the same demand for labor in producing Gates. However, each region has a different, perfectly inelastic supply of labor of (5M,10M,15M) respectively, with corresponding wages of ($30,$20,$10) per hour. Assuming labor is equally trained in each region and there is perfect fluidity in moving amongst regions, answer the following a. Illustrate each regions market for labor [include proper intercepts for labor demand] ? b. Illustrate \& briefly explain what will happen in the long run across all 3 regions c. Calculate \& highlight the change in total market value from your answers in part c \& if market is better or worse off for it 5) Sheeple-R-Us is currently headquartered in Detroit. It hires a wide variety of workers for millions of menial tasks to specialized, highly skilled jobs that only a select few could perform. Detroit is a-boot to deal with an influx of Canadian immigrants over the last few years. Answer the following a. If these Canadian do-gooders are looking for low-skilled labor, that can be easily substituted, illustrate \& briefly explain the impact this would have on SRU's market in Detroit b. If some of these Rush music lovers allow for other workers to focus more on their work than household production, illustrate \& briefly explain their impact on SRU's Detroit market ? c. If these Buddies are here to stay, illustrate \& briefly explain what would be the long-term impact on the labor market for highly substitutable workers \& why [be concise but thorough in your reasoning] d. EXTRA CREDIT: Generally, what would happen to the labor supply of Detroit if the Mayor, Governor, \& President came out about the poor quality \& taste of Canadian beer 1) A firm has a new technology called the ambi-dig-3000, that allows a worker to put one device on each hand simultaneously, allowing a worker to easily dig with both hands. The hourly rate of labor is $20/hr& the each ambi-dig- 3000 costs $2/hr in wear-n-tear. Answer the following questions a. Classify the type of inputs a worker \& the ambi-dig-3000 are to each other, the perfect ratio b/w them, \& its generic isoquant curve b. If each preferred ratio could produce 2 ditches/hr \& the hourly budget is $192, how many ditches could be dug within 1 hour? What is the optimal number of workers and ambi-dig-3000s to employ c. If the hourly wage dropped to $12/hr, what would be the new ontimal quantity of ditches, number of workers, \& ambi-dig-3000s to employ for 1 hour d. EXTRA CREDIT: Briefly explain the substitution effect, if any, between a worker \& the ambidig-3000, 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 = 460.20E, 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 3) Please evaluate this statement using your economic knowledge \& answer the following Long-Run Growing Pains: "Billy-Bob is looking to grow his company of Burgers \& Fries. He's currently bound to a kitchen lease that will soon expire. His employees are protected under minimum wage and his production process is heavily reliant on labor. BB is looking for a new, bigger kitchen but runs a rather slim budget and is sensitive to wages and rental rates. However, he spares no dime when it comes the quality of his food. There's nothing comparable to his burgers." a. As BB's Burgers \& Fries moves from the short-run to the long-run, elaborate on his potential level of wage sensitivity b. If the minimum wage were to increase for burger flippers, illustrate this labor market, highlighting the effects BB's company would have given this change c. EXTRA CREDIT: What's the potential penalty if BB decides to pay his workers less than minimum wage 4) There are three distinct geographic regions of Baldur; North, East, \& West. All have the same demand for labor in producing Gates. However, each region has a different, perfectly inelastic supply of labor of (5M,10M,15M) respectively, with corresponding wages of ($30,$20,$10) per hour. Assuming labor is equally trained in each region and there is perfect fluidity in moving amongst regions, answer the following a. Illustrate each regions market for labor [include proper intercepts for labor demand] ? b. Illustrate \& briefly explain what will happen in the long run across all 3 regions c. Calculate \& highlight the change in total market value from your answers in part c \& if market is better or worse off for it 5) Sheeple-R-Us is currently headquartered in Detroit. It hires a wide variety of workers for millions of menial tasks to specialized, highly skilled jobs that only a select few could perform. Detroit is a-boot to deal with an influx of Canadian immigrants over the last few years. Answer the following a. If these Canadian do-gooders are looking for low-skilled labor, that can be easily substituted, illustrate \& briefly explain the impact this would have on SRU's market in Detroit b. If some of these Rush music lovers allow for other workers to focus more on their work than household production, illustrate \& briefly explain their impact on SRU's Detroit market ? c. If these Buddies are here to stay, illustrate \& briefly explain what would be the long-term impact on the labor market for highly substitutable workers \& why [be concise but thorough in your reasoning] d. EXTRA CREDIT: Generally, what would happen to the labor supply of Detroit if the Mayor, Governor, \& President came out about the poor quality \& taste of Canadian beer
