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?

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

How would this apple-a-day law affect the demand and equilibrium price of apples?

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 marginal product and the value of the marginal product of apple pickers?

U.S. healthcare per person costs twice that of other rich countries. Does the United States overprovide? Do other countries underprovide? What economic concepts do you need to answer? What data might be relevant?

Explain how a firm’s production function is related to its marginal product of labor, how a firm’s marginal product of labor is related to the value of its marginal product, and how a firm’s value of marginal product is related to its demand for labor.

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

a. How would this apple-a-day law affect the demand and equilibrium price of apples?

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

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

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

Explain how a firm's production function is related to its marginal product of labor, how a firm's marginal product of labor is related to the value of its marginal product, and how a firm's value of marginal product is related to its demand for labor.

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

A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught:

$$\begin{aligned} &\begin{array}{lc} &\text { Quantity of Fish }\\ \text { Hours } & \text { (in pounds) } \\ \hline 0 \text { hours } & 0 \mathrm{lb} . \\ 1 & 10 \\ 2 & 18 \\ 3 & 24 \\ 4 & 28 \\ 5 & 30 \end{array} \end{aligned}$$

What is the marginal product of each hour spent fishing?

College students sometimes work as summer interns for private firms or the government. Many of these positions pay little or nothing.

Explain why students are willing to take these jobs.

A commercial fisherman notices the following relationship between hours spent fishing and the quantity of fish caught:

$$\begin{aligned} &\begin{array}{lc} &\text { Quantity of Fish }\\ \text { Hours } & \text { (in pounds) } \\ \hline 0 \text { hours } & 0 \mathrm{lb} . \\ 1 & 10 \\ 2 & 18 \\ 3 & 24 \\ 4 & 28 \\ 5 & 30 \end{array} \end{aligned}$$

The fisherman has a fixed cost of $\$ 10$ (his pole). The opportunity cost of his time is $\$ 5$ per hour. Graph the fisherman's total-cost curve. Explain its shape.

Your enterprising uncle opens a sandwich shop that employs 7 people. The employees are paid $12 per hour, and a sandwich sells for$6. If your uncle is maximizing his profit, what is the value of the marginal product of the last worker he hired? What is that worker’s marginal product?