The Effort of a Firm's Workers Depends on Their Real

question 31

Essay

The effort of a firm's workers depends on their real wage according to the following schedule:
$$\begin{array} { c c } \text { Real wage } & \text { Effort } ( E ) \\\hline 16 & 10 \\17 & 13 \\18 & 18 \\19 & 22 \\20 & 25 \\21 & 26\end{array}$$
The marginal product of labour is MPN = E(400 - 4N)/30.
a.What is the efficiency wage?
b.How many workers will the firm hire?
c.Suppose an adverse productivity shock reduces the marginal product of labour to ?MPN = E(360 - 4N)/30.How would your answers to parts (a)and (b)change?

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Definitions:

Weapons Effect

The tendency for the presence of firearms to increase the likelihood of aggression, especially when people are frustrated.

Firearms

Weapons designed to launch one or more projectiles through the controlled explosion of propellants.

Frustration

A feeling of dissatisfaction, often accompanied by anxiety or depression, resulting from unmet needs or unresolved problems.

Violent Media

Content in various forms of media, such as television, movies, video games, and the internet, that depicts acts of physical force intended to hurt or kill.