Frank Gunter owns an apple orchard. He employs 87 apple pickers and pays them each $8 per hour to pick apples, which he sells for$1.60 per box. If Frank is maximizing profit, what is the marginal revenue product of the last worker he hired? What is that worker’s marginal product?

[Related to Solved Problem 10.1 on page 330] Joe has $16 to spend on Twinkies and Ho-Hos. Twinkies have a price of$1 per pack, and Ho-Hos have a price of $2 per pack. Use the information in these graphs to determine the number of Twinkies and Ho-Hos packs Joe should buy to maximize his utility. Briefly explain your reasoning.

The following graph shows the effect on consumer surplus, producer surplus, government tariff revenue, and economic surplus of a tariff of $\$ 1$ per unit on imports of plastic combs into the United States. Use the areas denoted in the graph to answer the following questions.

a. Which area shows the losses to U.S. consumers of buying a smaller quantity of combs than they would have if they could have purchased them at the world price?

b. Which area shows the losses to U.S. consumers of having to buy combs from U.S. producers who are less efficient than foreign producers?

c. Which areas show the deadweight loss to the U.S. economy as a result of the tariff on combs?

The following graph shows the effect on consumer surplus, producer surplus, government tariff revenue, and economic surplus of a tariff of $1 per unit on imports of plastic combs into the United States. Use the areas denoted by lettters in the graph to answer the following questions.

Which area shows the losses to U.S. consumers of buying a smaller quantity of combs than they would have if they could have purchased them at the world price?

Consumer surplus is found as the area A. above the supply curve but below the price. B. below the demand curve but above the price. C. above the demand curve but below the price. D. below the supply curve but above the price. E. below the supply curve but above the demand curve.

How good was the 2019 U.S. women's soccer team? With players like Carli Lloyd, Alex Morgan, and Megan Rapinoe, the team put on an impressive showing en route to winning the 2019 Women's World Cup. Here are data on the number of goals scored by the team in games played in the 2019 season. Make a dotplot of these data.

1, 1, 2, 2, 1, 5, 6, 3, 5, 3, 13, 3

2, 2, 2, 2, 2, 3, 4, 3, 2, 1, 3, 6

The following graph shows the situation after the U.S. government removes a tariff on imports of canned tuna. Price

a. Which areas show the gain in consumer surplus?

b. Which area shows the loss in producer surplus?

c. Which area shows the loss in government tariff revenue?

d. Which areas show the gain in economic surplus?

Students wondered whose Twitter posts get more likes, on average: Katy Perry or Justin Timberlake. The students selected a random sample of 15 tweets from Katy Perry and a separate random sample of 15 tweets from Justin Timberlake and recorded the number of likes for each tweet. The dotplots display their sample data. Check if the conditions for calculating a confidence interval for $\mu_1-\mu_2$ are met.

Adam operates a pin factory. Suppose that Adam faces the situation shown in the following table and that the cost of renting a machine is $550 per week.

Draw Adam’s demand curve for capital.

What is a monopsony?

Research by economists Susan Helper, Morris Kleiner, and Yingchun Wang found that the use of pay-forperformance, or piece-rate pay, has declined in manufacturing industries in recent decades. In a summary of this research, Lester Picker explained, “This change has come about with the adoption of modern manufacturing systems in which firms produce a greater variety of products to a more demanding quality and delivery standard.”

Why would modern systems “in which firms produce a greater variety of products to a more demanding quality and delivery standard” than manufacturers used previously result in firms choosing to pay their workers salaries rather than use piece rates?

Through the 2016 season, Nick Saban’s record as the head football coach at the University of Alabama was 119 wins and 19 losses. The $11.125 million salary the university paid him in 2017 was the highest received by any college football coach. Yet ESPN commentator Scott Van Pelt argued, “Alabama is still getting a bargain in Nick Saban, and I guarantee you that they know that.” How could the University of Alabama be getting a bargain despite paying Saban such a high salary?

Lawrence Katz, an economist at Harvard, was quoted in a newspaper article as arguing that differences between the incomes of male physicians and female physicians “are largely explained by individual choices.” He also noted that discrimination could account for part of the gap, “though it isn’t clear how much.”

What did Katz mean by “individual choices”? How can individual choices result in differences between how much men and women are paid?

Lawrence Katz, an economist at Harvard, was quoted in a newspaper article as arguing that differences between the incomes of male physicians and female physicians “are largely explained by individual choices.” He also noted that discrimination could account for part of the gap, “though it isn’t clear how much.”

Why is it difficult to estimate how much of the gap between what men and women are paid is due to discrimination?