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torisob [31]
3 years ago
12

Dream Home Builders, a construction company, wants to make a decision on the quantity of labor to be hired. It has already emplo

yed 10 workers. Suppose the wage rate for construction workers is $30 per hour. The value of the marginal product of labor of hiring 11, 12, 13, 14, and 15 workers is $70, 562, 548, $27 and $14 per hour respectively When Dream Home Builders employs 11 workers, it can increase profts by workers. Dream Home Builders optimizes by employing a total of workers the market wage changes to $27, Dream Home Builders would the number of workers employed to The curve depicting the value of the marginal product of labor is also the labor curve

Business
2 answers:
alekssr [168]3 years ago
7 0

Answer:

Explanation:

It can boost the profits by employing more workers.

Dream Home Builders optimizes by hiring a full amount of 13 workers (VMP = Cost of labor).

Whenever the market pay adjust to $27, Dream Home Builders would boost the amount of their workers that are hired to 14 workers.

The curve portraying the value of marginal product of labor is the same thing as the labor demand curve.

A diagram solution to the question can be seen in the attached image below

Andru [333]3 years ago
3 0

Answer: a. When Dream Home Builders employs 11 ​workers, it can increase profits by__hiring___ workers

B.When Dream Home Builders employs 11 ​workers, it can increase profits by__13___ workers

C. If the market wage changes to ​$27​, Dream Home Builders would _increase___

the number of workers employed to 14__workers

D. The curve depicting the value of the marginal product of labor is also the labor __demand__curve.

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