Graph the Impact of the Following Events in the Market

question 82

Essay

Graph the impact of the following events in the market for typists.Your graph should include shifting the appropriate curve and indicate the change to equilibrium wage W₁ and quantity of labor L₁.
a.The introduction of new ergonomic keyboards increases the rate at which typists can complete their tasks.
b.The main supplies typists use-computers, desks, and chairs-are all increasing in cost for their bosses.
c.The conditions in a similar profession, such as office manager, are superior in terms of pay and benefits.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (direct materials, direct labor, and both variable and fixed overhead) in the price of a product.

Idle Capacity

Unused or underutilized resources within a business, often indicating inefficiency, where machinery, space, or labor is not being employed to full capacity.

Variable Overhead Cost

Costs that vary with the level of production output, such as supplies and utilities for manufacture.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed overhead costs.