Principles of Microeconomics 7th Edition solutions

Principles of Microeconomics 7
Suppose that the president proposes a new law aimed at reducing healthcare costs: All Americans are re-quired to eat one apple daily.a.How would this apple-a-day law affect the de-mand and equilibrium price of apples?b.How would the law affect the marginal product and the value of the marginal produc

Principles of Microeconomics 7
Show the effect of each of the following events on the market for labor in the computer manufacturing industry.a.Congress buys personal computers for all U.S. college students.b.More college students major in engineering and computer science.c.Computer firms build new manufacturing plants

Principles of Microeconomics 7
Suppose that labor is the only input used by a perfectly competitive firm. The firms production function is as follows:Days of Labor Units of Output0 days0 units17213319425528629729a.Calculate the marginal product for each additional worker.b.Each unit of output sells for $10. Calculate the

Principles of Microeconomics 7
Smiling Cow Dairy can sell all the milk it wants for $4 a gallon, and it can rent all the robots it wants to milk the cows at a capital rental price of $100 a day. It faces the following production schedule:Number of RobotsTotal Product00 gallons1502853115414051506155a.In what kind of market structu

Principles of Microeconomics 7
The nation of Ectenia has twenty competitive apple orchards, which sell apples at the world price of $2 per apple. The following equations describe the produc-tion function and the marginal product of labor in each orchard:Q= 100LL2MPL= 100 2L where Q is the number of apples produced in a day, L is

Principles of Microeconomics 7
Your enterprising uncle opens a sandwich shop that employs seven people. The employees are paid $6 per hour, and a sandwich sells for $3. If your uncle is maximizing his profit, what is the value of the mar-ginal product of the last worker he hired? What is that workers marginal product?

Principles of Microeconomics 7
Leadbelly Co. sells pencils in a perfectly competitive product market and hires workers in a perfectly competitive labor market. Assume that the market wage rate for workers is $150 per day.a.What rule should Leadbelly follow to hire the profit-maximizing amount of labor?b.At the profit-maximizing le

Principles of Microeconomics 7
During the 1980s, 1990s, and the first decade of the 21st century, the United States experienced a sig-nificant inflow of capital from abroad. For example, Toyota, BMW, and other foreign car companies built auto plants in the United States..Using a diagram of the U.S. capital market, show the effect

Principles of Microeconomics 7
Policymakers sometimes propose laws requiring firms to give workers certain fringe benefits, such as health insurance or paid parental leave. Lets consider the effects of such a policy on the labor market.a.Suppose that a law required firms to give each worker $3 of fringe benefits for every hour tha