Show the effect of each of the following events on the market for labor in the computer manufacturing industry. a. Congress buys personal computers for all U.S. college students. b. More college students major in engineering and computer science. c. Computer firms build new manufacturing plants.

Suppose that labor is the only input used by a perfectly competitive firm. The firm's production function is as follows:

$$\begin{array}{cc} \text{ Days of Labor } & \text{ Units of Output } \\ \hline 0 \text{ days } & 0 \text{ units} \\ 1 & 7 \\ 2 & 13 \\ 3 & 19 \\ 4 & 25 \\ 5 & 28 \\ 6 & 29 \\ 7 & 29 \end{array}$$

a. Calculate the marginal product for each additional worker.

Show the effect of each of the following events on the market for labor in the computer manufacturing industry.

Congress buys personal computers for all U.S. college students.

Suppose that the president proposes a new law aimed at reducing healthcare costs: All Americans are required to eat one apple daily.

How would the law affect the marginal product and the value of the marginal product of apple pickers?

Suppose that the president proposes a new law aimed at reducing healthcare costs: All Americans are required to eat one apple daily.

How would the law affect the demand and equilibrium wage for apple pickers?

Show the effect of each of the following events on the market for labor in the computer manufacturing industry.

Computer firms build new manufacturing plants.

Show the effect of the following event on the market for labor in the computer manufacturing industry.

Congress buys personal computers for all U.S. college students..

Smiling Cow Dairy can sell all the milk it wants for $\$ 4$ a gallon, and it can rent all the robots it wants to milk the cows at a capital rental price of $\$ 100$ a day. It faces the following production schedule:

$$\begin{array}{cc} \text{ Number of Robots} & \text{ Total Product} \\ \hline 0 & 0 \text{ gallons} \\ 1 & 50 \\ 2 & 85 \\ 3 & 115 \\ 4 & 140 \\ 5 & 150 \\ 6 & 155 \end{array}$$

a. In what kind of market structure does the firm sell its output? How can you tell?

Show the effect of the following events on the market for labor in the computer manufacturing industry.

More college students major in engineering and computer science.

Show the effect of the following event on the market for labor in the computer manufacturing industry.

More college students major in engineering and computer science.

Smiling Cow Dairy can sell all the milk it wants for $\$ 4$ a gallon, and it can rent all the robots it wants to milk the cows at a capital rental price of $\$ 100$ a day. It faces the following production schedule:

$$\begin{array}{cc} \text{ Number of Robots } & \text{ Total Product } \\ \hline 0 & 0 \text{ gallons } \\ 1 & 50 \\ 2 & 85 \\ 3 & 115 \\ 4 & 140 \\ 5 & 150 \\ 6 & 155 \end{array}$$

Calculate the marginal product and the value of the marginal product for each additional robot.

Suppose that labor is the only input used by a perfectly competitive firm. The firm’s production function is as follows:

$$\begin{array}{lc} \text { Days of Labor } & \text { Units of Output } \\ \hline 0 \text { days } & 0 \text { units } \\ 1 & 7 \\ 2 & 13 \\ 3 & 19 \\ 4 & 25 \\ 5 & 28 \\ 6 & 29 \\ 7 & 29 \end{array}$$

What happens to this demand curve if the price of output rises from $10 to$12 per unit?

Using supply and demand diagrams, show the effect of the following events on the market for personal computers.

a. The price of computer chips falls.

b. There is a rise in consumer incomes C.

c. The price of computer software rises.

d. The price of personal computers rises.

e. Universities require incoming freshmen to have their own personal computers.

If the population of the United States suddenly grew because of a large wave of immigration, what would happen to wages? What would happen to the rents earned by the owners of land and capital?