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 55 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
Great answer, keep it coming :)

parker125

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Recent studies have shown that the number of medication errors increases in relation to the number of orders that are verified per pharmacist, per work shift.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

How to find the equation of a line that is perpendicular to a line passing through a point How to find the equation of a line that is perpendicular to a line passing through a point
Kyoto Protocol encourages industry to innovate and reduce the level of emissions Kyoto Protocol encourages industry to innovate and reduce the level of emissions
Sea-Level Pressure Sea-Level Pressure
A solenoid has an area of 41.0 cm2. Find the change in magnetic flux through the solenoid. A solenoid has an area of 41.0 cm2. Find the change in magnetic flux through the solenoid.
1) (a) What is Coulomb?s Law? (b) Find the net electrostatic force on the charge labeled ?P? in ... 1) (a) What is Coulomb?s Law? (b) Find the net electrostatic force on the charge labeled ?P? in ...
Suppose a country imports televisions. The country's supply and demand curves are shown in ... Suppose a country imports televisions. The country's supply and demand curves are shown in ...
Video: Medullary osmotic gradient - influencing factors

For a complete list of videos, visit our video library