Microeconomics
Microeconomics: The employees at Warren Manufacturing Company are unionized. As minimum requirements, the union members insist on keeping a workforce of at least 300 workers, and accepting an hourly wage rate of no less than $8. Beyond those minimum requirements, however, they are considering some different economic goals. Calculated on an hourly basis, the employee’s’ marginal revenue product schedule is:
Employees MRP
100 $20
200 18
300 16
400 14
450 13
500 12
550 11
600 10
650 9
700 8
800 6
900 4
a) If the union attempts to maximize the wage rate of its employees, subject to the above constraints, what wage rate and employment level can it expect to achieve?
b) If the union attempts to maximize the employment of its members at Warren, what wage rate and employment level can it expect to achieve?
How much choice do you expect to have in your working lifetime between leisure and labor? What factors will influence your choice?
………………Answer preview……………………..
The minimum hourly wage rate of Warren Manufacturing Company is $8. This wage rate is issued at a workforce of 700 workers. The set goals and objectives of the company are achieved when it employs a minimum of 300 workers at wage rate of $8. Therefore, the increment of the company’s wage rate will lead to a decrease of the total workforce…………………
APA
355 words
