« previous next »

Author Question: If the income effect of a wage increase equals the substitution effect, the labor supply curve is ... (Read 167 times)

cabate

  • Hero Member
  • *****
  • Posts: 537
on: Jun 29, 2018
If the income effect of a wage increase equals the substitution effect, the labor supply curve is horizontal at the equilibrium wage.
 
  Indicate whether the statement is true or false

Question 2

Debbie makes porcelain plates in her home and sells them to the Opus gallery. She spent 400 last month on supplies and made 50 plates. She sold the plates to the gallery at 25 per plate. The gallery sells all the plates for 40 each.
 
  For all of the 50 plates, what is Debbie's total value added? For all the 50 plates, what is the gallery's total value added?
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


laurnthompson

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 29, 2018
Answer to Question 1

FALSE

Answer to Question 2

To determine Debbie's value added, we must find the additional market value she gives to the plates. For each plate, this is the difference between the price she charges the gallery and the cost of her raw materials. Her cost per plate is 400/50 or 8. Her value added per plate is 25 - 8 or 17. Her total value added for all 50 plates is 17  50 or 850. The gallery's value added per plate is 40 - 25 = 15. The total value added of the gallery for all 50 plates is 50  15 = 750.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Women who are monozygotic twins and have the same genes are more similar in their marital happiness Women who are monozygotic twins and have the same genes are more similar in their marital happiness
Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of Bell Curve for Intelligence IQ scores for a population-based sample usually fall into this kind of
Effect of Winds on Horizontal Transport Effect of Winds on Horizontal Transport
Effect of dietary fats on high- and low-density cholesterol levels Effect of dietary fats on high- and low-density cholesterol levels
A melting profile shows the increase in UV absorption versus temperature A melting profile shows the increase in UV absorption versus temperature
Position effect variegation of eye color in Drosophila Position effect variegation of eye color in Drosophila
Video: Blood Flow Through the Kidneys

For a complete list of videos, visit our video library