Consider Blewitt's Farm, a small blueberry grower relative to the size of the market whose production has no impact on wages and prices. The following table presents Blewitt's production schedule for blueberries: Suppose that the market wage for blueberry pickers is $118 per worker per day, and the price of blueberries is $16 per pound. Suppose that the market wage for blueberry pickers is $118 per worker per day, and the price of blueberries is $16 per pound. On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $16 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1 , the of marginal product of for the first worker should be plotted with a horizontal coordinate
Consider Blewitt's Farm, a small blueberry grower relative to the size of the market whose production has no impact on wages and prices.
The following table presents Blewitt's production schedule for blueberries: Suppose that the market wage for blueberry pickers is $118 per worker per day, and the price of blueberries is $16 per pound.
Suppose that the market wage for blueberry pickers is $118 per worker per day, and the price of blueberries is $16 per pound.
On the following graph, use the blue points (circle symbol) to plot Blewitt's labor demand curve when the output price is $16 per pound. Note: Remember to plot each point between the two integers. For example, when the number of workers increases from 0 to 1 , the of marginal product of for the first worker should be plotted with a horizontal coordinate of 0.5 , the value halfway between 0 and 1 . Line segments will automatically connect the points.
At the given wage and price level, Blewitt's should hire ____ pickers.
Suppose that the price of blueberries decreases to $12 per pound, but the wage rate remains at $118.
On the previous graph, use the purple points (diamond symbol) to plot Blewitt's labor demand curve when the output price is $12 per pound.
Now Blewitt's should hire ____ pickers when the output price is $12 per pound.
Assuming that all blueberry-producing firms have similar production schedules, a decrease in the price of blueberries will cause the ____ blueberry pickers to ____.
Suppose that wages decrease to $100 due to a decreased demand for workers in this market. Assuming that the price of blueberries remains at $12 per pound, Blewitt's will now hire ____ pickers.
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