Business, 15.04.2020 20:36 marissaimuniz

Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection firm. Cleanlt hires workers in a perfectly

a. Draw side-by-side graphs for the labor market and for Cleanit and show each of the following.

i. The market wage, labeled Wm, and the quantity of workers hired in the market, labeled Lm
ii. The marginal factor (resource) cost curve, labeled MFC
ili. The marginal revenue product curve, labeled MRP
iv. The wage paid by the firm, labeled Wf, and the quantity of workers hired by the firm, labeled Lt

b. Assume that Cleanlt is the only firm in the industry to adopt a new technology. The new technology increases the productivity of Cleanlt's workers.

i. In the short run, will the wage paid by Cleanlt be higher than, lower than, or equal to Wf? Explain.
ii. In the short run, will the number of workers hired by Cleanlt increase, decrease or stay the same? Explain.

c. Cleanlt uses capital in the form of trucks, which it rents for $10,000 each. The marginal product of the last truck used is 100,000 units. If Cleanlt is minimizing its costs and the marginal product of the last c. worker hired is 500 units, calculate the wage. Show your work.

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Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection fir...

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