This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The demand for labor is given by L(w) = 1000 - .5w, where w is the minimum wage. Find the level of w ... (Read 63 times)

jasdeep_brar

  • Hero Member
  • *****
  • Posts: 569
on: Jul 1, 2018
The demand for labor is given by L(w) = 1000 - .5w, where w is the minimum wage. Find the level of w that maximizes the total wage payment, wL(w). What is the wage-elasticity of labor demand at the maximizing minimum wage?
 
  What will be an ideal response?

Question 2

John Rawls' theory of justice does not take into account the disincentive effects of redistributive programs.
 
  a. True b. False


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

underwood14

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jul 1, 2018
Answer to Question 1

We maximize w(1000 - .5w), which occurs where the derivative is zero:
1000 - w = 0
Thus, w = 1000. The elasticity at that point is E = (dL/dw)(w/L) = .5(1000/500 ) = 1.

Answer to Question 2

b


jasdeep_brar

  • Member
  • Posts: 569
Reply 2 on: Jul 1, 2018
Wow, this really help

chjcharjto14

  • Member
  • Posts: 342
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

Pink eye is a term that refers to conjunctivitis, which is inflammation of the thin, clear membrane (conjunctiva) over the white part of the eye (sclera). It may be triggered by a virus, bacteria, or foreign body in the eye. Antibiotic eye drops alleviate bacterial conjunctivitis, and antihistamine allergy pills or eye drops help control allergic conjunctivitis symptoms.

Did you know?

Women are 50% to 75% more likely than men to experience an adverse drug reaction.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Confirming an Extinction-Level Impact Site Confirming an Extinction-Level Impact Site
Entry level nurse competencies Entry level nurse competencies
A weather map depicting the sea-level pressure distribution for March 4, 1994. A weather map depicting the sea-level pressure distribution for March 4, 1994.
How to quickly find the vertex of a quadratic equation that is in standard form How to quickly find the vertex of a quadratic equation that is in standard form
How to find the possible equations of a graph? How to find the possible equations of a graph?
Find the length of DE to one decimal place Find the length of DE to one decimal place
Video: Pericarditis

For a complete list of videos, visit our video library