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 10 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
:D TYSM

kthug

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Stand in a doorway and hook your fingertips on both sides about chest level or lower. Stand in a doorway and hook your fingertips on both sides about chest level or lower.
How to find the critical numbers of a function How to find the critical numbers of a function
Find Your Blind Spot Find Your Blind Spot
Find derivative using chain rule Find derivative using chain rule
Find the length of x to the nearest tenth of a unit. Find the length of x to the nearest tenth of a unit.
During a period of high power demand, the voltage output of the power company is reduced by ... During a period of high power demand, the voltage output of the power company is reduced by ...
Video: Mendel's Pea Experiment

For a complete list of videos, visit our video library