Calculate how the hurricane affects the income of each, Ask an Expert

Economics

The nation of Ectenia has 20 competitive apple orchards, which sell apples at the world price of $2. The following equations describe the production function and the marginal product of labor in each orchard:

Q = 100L %u2013 L2.

MPL = 100 %u2013 2L

where Q is the number of apples produced in a day, L is the number of workers, and MPL is the marginal product of labor.?

a) What is each orchard%u2019s labor demand as a ?function of the daily wage W? What is the ?market%u2019s labor demand?

b) Ectenia has 200 workers who supply their ?labor inelastically. Solve for the wage W. How many workers does each orchard hire? How much profit does each orchard owner make?

c) Calculate what happens to the income of workers and orchard owners if the world price of apples doubles to $4.

d) Now suppose the price of apples is back at $2, but a hurricane destroys half the orchards. Calculate how the hurricane affects the income of each worker and of each remaining orchard owner. What happens to the income of Ectenia as a whole?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9450527

Have any Question?Write your Review or question?

Related Questions in Business Economics

Consider a french-owned cheese factory located in paris

Consider a French-owned cheese factory located in Paris, France. Are the goods made by the cheese factory part of the U.S. Gross Domestic Product (GDP)? Are these goods included in the U.S. Gross National Product (GNP)? ...

What is the difference between accounting costs and

What is the difference between accounting costs and economic costs? Why do economic costs include both explicit (revealed and expressed) costs and implicit (present but not obvious) costs? What are the differences betwee ...

It has been a bad day for the stock market and you have

It has been a bad day for the stock market and you have heard that only 30% of all stocks gained value. Suppose you have a portfolio of 10 securities and assume a binomial distribution for the number of your stocks that ...

What does it mean when dollars are used as a unit of

What does it mean when Dollars are used as a unit of measurement along the vertical axis? (Indifference curve only) Can you also show me how the graph will look like?

For assumption of regression the four assumption linearity

For assumption of regression, the four assumption, linearity, independence, no multicollinearity, equal Variance, which one cannot be detected by any means?

A sample of 36 us households is taken and the average

A sample of 36 U.S. households is taken and the average amount of newspaper garbage or recycling is found to be 27.8 pounds with a standard deviation of 2 pounds. Estimate, with 99% confidence, the mean amount of newspap ...

Number of cars average trvel time between a and b using

Number of cars Average trvel time between A and B using route 1 1 10 2 10 3 10 4 11 5 12 6 14 7 18 8 24 Alternative route 2: average travel time is 18 minutes(no matter how many cars are using it) How many cars will take ...

What do you recommend that a company do to prevent andor

What do you recommend that a company do to prevent and/or solve subscriber uncollectable issues?

Suppose the demand schedule in a market can be represented

Suppose the demand schedule in a market can be represented by the equation QD = 500 -10P, where QD is the quantity demanded and P is the price. . Also, suppose the supply schedule can be represented by the equation QS = ...

Why was the federal reserve system set up with 12 regional

Why was the Federal Reserve System set up with 12 regional banks rather than one central bank as in other countries? Why was it made an independent quasi-governmental body and not a direct part of the federal government?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert