2 Consider a firm with the following Output and Marginal

Last updated: 3/19/2023

2 Consider a firm with the following Output and Marginal Product Number of Output Value of worker Units employed 0 1 2 3 4 5 6 7 8 9 0 14 Marginal Products Units 21 25 24 22 20 18 14 Average Product Units Marginal Product GhC 60 Assuming the price of output is 5GHC a Fill in the blanks in the above table for the firm 4 Marks Value of Average Product GhC b What is the optimal level of employment when the wage rate for a worker is 100 GHC 3 Marks c Assuming the firm is a discriminatory firm with a positive discrimination coefficient d 0 5 against tribe A If the market wage is 100 GHC explain the condition under which the firm will hire a worker from tribe 4 Marks d If in January 2016 the wage rate for doctors was 4000 GHC and 1200 doctors were working in the public sector in Ghana and in November government reduces the wage of doctors to 3800 GHC and 400 doctors were remaining in the public sector Calculate the labour supply elasticity for doctors in the public sector Is labour supply for doctors elastic 4 Magira