Economists have advanced a number of theories to explain the nature and effect of discrimination in labor markets. in the most basic theory, white men and black men are assumed to be perfect substitutes that are equally productive in producing a good.

a) Depict an isoquant map depicting a typical firm's use of two inputs - white and black labor. Label its slope.

b) Assume that discrimination exists in a society such that the wage paid to black workers is $12 but the wage paid to white workers is $13, as determined by the market. For the three profit maximizing firms described.

FIRM A: not prejudice in any way and does not discriminate between black and white workers.

FIRM B: prejudice against black workers and willing to pay a 2 dollar wage premium for white workers, even though all workers are equally productive.

FIRM C: prejudice against white workers and willing to pay a 2 dollar wage premium for black workers, even though all workers are equally productive.

c) What would be the effect of an increase the price of black labor from $12 to $13 and a decrease in the price of white labor from $13 to $12 on each of the three firms?

Please see the attached file.
1. Two firms together employ 100 units of labor and 100 units of capital...
2. Suppose that a small economy's production possibility frontier for chocolate (X) and raspberries (Y)....

Consider the following graph, and answer questions a through e.
Please see the attached MS Word document for the graph.
a. If the price of capital is $7.50 per unit what is the per unit price of labor?
b. How many units of labor should the firm use in order to produce 400 units of output at the least cost?
c. The m

The manager of a meat-packing plant can use either butchers (labor) or meat saws (capital) to prepare packages of sirloin steak. Based on estimates provided by an efficiency expert, the firm's production function for sirloin steak is given by Q=K+L.
a. Graph the linear production function corresponding to 5 units of output.

Please open the word file to view the mathematical notations.
Question
Consider a firm with production function .
(a) Sketch the isoquant diagram of this firm.
(b) Derive the marginal rate of technical substitution between the two inputs. What is the relationship between the marginal rate of technical substitution an

Explain why a firm's long-run costs are minimized when it employs a mix of resources such that the ratio of all of the resources' marginal products to their wage rates are equalized. Use a graph to illustrate.

I am having problems trying to solve the following problem. Please provide me with detailed step-by-step solutions.
Suppose that a firm's production function is Q = 10 L 0.5 K 0.5
The cost of a unit of L is 20$ and user cost of capital is 80$.
a) The firm is currently producing 100 units of output and has determined that

Please see the attached file for full problem description.
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4
The production of barstools (q) is characterized by a production function of the form
a. Derive general expressions for average productivity of labor and capital for barstool production as functions of K and L. (Hint: By definition, = q/L and = q/K)

The marginal product of labor
a. measures how output changes as the wage rate changes
b. is equal to the average product of labor divided by the amount of capital stock
c. is greater than the average product of labor when the average product of labor is decreasing
d. can be negative
e. a and b