Theory and Estimation Cost

5. A certain company was trying to find the optimum number of workers to hire. Assuming that the price of each unit of output is $10 and that each worker must be paid a wage of $40 per day, how many workers should be hired. Additional Data: Workers hired: 0 1 2 3 4 5 6 Total output 0 12 22 30 36 40 42

Isoquant/isocost

Use an isoquant/isocost diagram and words to show how firms will respond to a decrease in the wage rate. Be sure to identify the short run scale effect and the long run substitution effect.

Unemployment and Incentive Pay

I would like some assistance in answering these questions in as much detail as possible so that I can understand the concepts associated wit this topic. Thanks.

Employee Productivity

See attached table and data chart: A. What firm-specific and industry-specific factors might be used to explain differences among giant corporations in the amount of revenue per employee and profit per employee? B. A multiple regression analysis based upon the data contained in the attached table reveals the following (t statistics in parentheses): Profit/Emp=$17,267,679 + 0.052 Ind. Profit/Emp + (1.26) (0.16) 0.083 Rev/Emp + 0.006 Ass./Emp. (5.19) (3.86) R squared = 98.0%, F Statistic = 417.12 Interpret these results. Is profit per employee more sensitive to industry-specific or firm... click for more

Labor Market Research

In 2003 the state of Arizona determined that there was a shortage in correctional officers. I need to determine how correctional officers' wages are calculated.