// LabMarRevProdSpecs.swift. 12/1/2020. import Foundation class LabMarRevProdSpecs { let strLaborPerfectCompSpecs :String = """ `` Lab Specs // Slider specs 100 500 100 100 // 0: Prod Function Const 0.1 0.9 0.1 0.5 // 1: Prod Function Labor Exp -7.5 7.5 2.5 -5.0 // 2: Labor Supply Function Const 0.5 3.0 0.5 1.0 // 3: Labor Supply Function Coef 1600 2500 100 2000 // 4: Demand Const -600 -400 100 -500 // 5: Demand Coef 0 70 1 4 // 6: Labor 0.00 100.00 10.00 30.00 // 7: Wage // Graphs 0 0 1200 5 // 8: Market specs Q_(1000s) P // 9: Market names 0 0 50 40 // 10: MPPL axis specs 0 0 50 100 // 11: MRPL axis specs L // 12: MPPL and MRPL competitive names L_(1,000s) // 13: MPPL and MRPL monopoly axis names // Wage market supply effect F // 14: True or False `` Prob Specs ` Problem 0 Start Screen 1 - Constructing the Firm's Marginal Revenue Product Curve // 0: Title // Slider Visibility: DemConst DemCoef MPPLConst MPPLCoef LabSupConst LabSupCoef Labor Wage N N N N N N B N // 1: Both, LabelOnly, ScrollbarOnly, Neither // Slider Default Reestablish F // 2: True or False // Radiobutton: CompVisible MonopVisible CompDefault T F T // 3: Good Market: True or False T F T // 4: Labor Market: True or False // Output Label Visibility // Good Market: Quantity Price NbrOfFirms T T F // 5: True or False // Labor Market: MEL MPPL MRPL F T T // 6: True or False // Firm: QuantityFirm MarRev MarCost Profit T T F F // 7: True or False // Graph Visibility T T T // 8: Market, MPPL, MRPL // Curves: DemGood SupGood E E // 9: Trace, Entire, None // Curves: MEL MPPL MRPL N E T // 10: Trace, Entire, None // Curves: DemLabor SupLabor N N // 11: Trace, Entire, None ` Text Start // 12: Text `RED`BLDObjective:`BLD Construct the firm's marginal revenue product of labor curve from its marginal physical product of labor curve and its marginal revenue.`BLK `BLDDefinition:`BLD A firm's marginal physical product of labor (MPPL) equals the change in the firm's production resulting from a one unit change in labor. `BLDDefinition:`BLD A firm's marginal revenue (MR) equals the change in the firm's total revenue resulting from a one unit change in production. `BLDDefinition:`BLD A firm's marginal revenue product of labor (MRPL) equals the change in the firm's total revenue resulting from a one unit change in labor. `BLDQuestion:`BLD When a firm hires one additional unit of labor, why does the firm's total revenue change? `BLDAnswer:`BLD When a firm hires one additional unit of labor, it produces more output that it will then sell. Thereby, its total revenue changes. Next, we can apply the definitions of marginal physical product of labor and marginal revenue to be more specific. When a firm hires one additional unit of labor, it produces MPPL more units of output. A one unit increase in output, increases total revenue by MR dollars. Therefore, MPPL additional units of output will increase total revenue by MPPL x MR. Hence, marginal revenue product of labor equals the product of marginal physical product and marginal revenue: MRPL = MPPL x MR `BLDSummary:`BLD `0x2022 1 unit change in labor leads to a MPPL change in output `0x2022 1 unit change in output leads to a MR change of total revenue `0x2022 1 unit change in labor leads to a MPPL x MR change of total revenue `BLDSummary:`BLD MRPL = MPPL x MR The lab illustrates this. Initially, the firm hires 4 units of labor. `IND`BLDQuestions:`BLD What does `0x2022 MPPL equal? `0x2022 MR equal? `0x2022 MRPL equal? `INDWe have found one point on the firm's marginal revenue product of labor curve as illustrated in the diagram to the right. When the firm hires 4 units of labor, MRPL equals $75.00, just 25.00 times $3.00. To find another point, change the quantity of labor hired. Focus on the labor scrollbar, the scrollbar lying between the two diagrams on the right side of the screen. Adjust the labor scrollbar to increase labor from 4 to 16. `IND`BLDQuestions:`BLD What does `0x2022 MPPL equal? `0x2022 MR equal? `0x2022 MRPL equal? `INDWe have found a second point on the firms marginal revenue product of labor curve. When the firm hires 16 units of labor, MRPL equals $37.50, just 12.50 times $3.00. Furthermore, the lab has traced out all the points between 4 and 16 units of labor. Continue to trace out the entire marginal revenue product of labor curve by adjusting the labor scrollbar. ` Prob End ` Problem 1 Start Screen 2 - Firm's Profit Maximizing Quantity of Labor // 0: Title // Slider Visibility: DemConst DemCoef MPPLConst MPPLCoef LabSupConst LabSupCoef Labor Wage N N N N N N B B // 1: Both, LabelOnly, ScrollbarOnly, Neither // Slider Default Reestablish T // 2: True or False // Radiobutton: CompVisible MonopVisible CompDefault T F T // 3: Good Market: True or False T F T // 4: Labor Market: True or False // Output Label Visibility // Good Market: Quantity Price NbrOfFirms T T F // 5: True or False // Labor Market: MEL MPPL MRPL T T T // 6: True or False // Firm: QuantityFirm MarRev MarCost Profit T T T T // 7: True or False // Graph Visibility T T T // 8: Market, MPPL, MRPL // Curves: DemGood SupGood E E // 9: Trace, Entire, None // Curves: MEL MPPL MRPL E E E // 10: Trace, Entire, None // Curves: DemLabor SupLabor N N // 11: Trace, Entire, None ` Text Start // 12: Text `RED`BLDObjective:`BLD Illustrate that the firm's profit maximizing quantity of labor is determined by the intersection of the marginal revenue product of labor and marginal expense of labor curves.`BLK Note that the wage is $30.00. Using the labor scrollbar (the horizontal scrollbar) find the firm's profit maximizing quantity of labor. `IND`BLDQuestion:`BLD Is the firm's marginal revenue product of labor less than, greater than, or equal to its marginal expense of labor? `IND Using the wage scrollbar (the vertical scrollbar) raise the wage to $50.00. Using the labor scrollbar (the horizontal scrollbar) find the firm's profit maximizing quantity of labor. `IND`BLDQuestion:`BLD Is the firm's marginal revenue product of labor less than, greater than, or equal to its marginal expense of labor? `IND Using the wage scrollbar (the vertical scrollbar) raise the wage to $80.00. Using the labor scrollbar (the horizontal scrollbar) find the firm's profit maximizing quantity of labor. `IND`BLDQuestion:`BLD Is the firm's marginal revenue product of labor less than, greater than, or equal to its marginal expense of labor? `IND `BLDGeneralize:`BLD What two factors determine how much labor a profit maximizing firm hires? ` Prob End ` Problem 2 Start Screen 3 - Individual Firm's Demand Curve for Labor // 0: Title // Slider Visibility: DemConst DemCoef MPPLConst MPPLCoef LabSupConst LabSupCoef Labor Wage N N N N N N B B // 1: Both, LabelOnly, ScrollbarOnly, Neither // Slider Default Reestablish T // 2: True or False // Radiobutton: CompVisible MonopVisible CompDefault T F T // 3: Good Market: True or False T F T // 4: Labor Market: True or False // Output Label Visibility // Good Market: Quantity Price NbrOfFirms T T F // 5: True or False // Labor Market: MEL MPPL MRPL T T T // 6: True or False // Firm: QuantityFirm MarRev MarCost Profit T T T T // 7: True or False // Graph Visibility T T T // 8: Market, MPPL, MRPL // Curves: DemGood SupGood E E // 9: Trace, Entire, None // Curves: MEL MPPL MRPL E E E // 10: Trace, Entire, None // Curves: DemLabor SupLabor T N // 11: Trace, Entire, None ` Text Start // 12: Text `RED`BLDObjective:`BLD Illustrate the relationship between the individual firm's demand curve for labor and its marginal revenue product of labor curve.`BLK `BLDDefinition:`BLD A firm's individual demand curve for labor answers the following hypothetical questions: If the wage were $____, how much labor would the firm hire? Note that the wage is initially $30.00. As before, adjust the firm's quantity scrollbar to find the firm's profit maximizing quantity of labor. `IND`BLDQuestion:`BLD When the wage is $30.00, how much labor does the profit maximizing firm hire? `INDWe found one point on the firm's individual demand curve. When the wage is $30.00, the firm hires 25 units of labor. `BLDQuestion:`BLD How do we find another point? `BLDAnswer:`BLD Choose another wage. Using the wage scrollbar raise the wage to $50.00. Using the labor scrollbar find the firm's profit maximizing quantity of labor. `IND`BLDQuestion:`BLD When the wage is $50.00, how much labor does the profit maximizing firm hire? We found a second point on the firm's individual supply curve. `INDWhen the wage is $50.00, the firm hires 9 units of labor. The thick dark red line appearing on the screen is the individual firm's demand curve for labor between the two wages you specified, $30.00 and $50.00. Continue to trace out the demand curve. Use the wage scrollbar to raise the wage to $80.00. `IND`BLDQuestion:`BLD How much labor would the firm hire if the wage were $80.00? `IND `BLDGeneralize:`BLD How is the firm's marginal revenue product of labor curve related to its demand curve for labor? ` Prob End """ let strLaborImperfectCompSpecs :String = """ `` Lab Specs // Slider specs 100 500 100 100 // 0: Prod Function Const 0.1 0.9 0.1 0.5 // 1: Prod Function Labor Exp -7.5 7.5 2.5 -5.0 // 2: Labor Supply Function Const 0.5 3.0 0.5 1.0 // 3: Labor Supply Function Coef 1600 2500 100 2000 // 4: Demand Const -600 -400 100 -500 // 5: Demand Coef 0 70 1 25 // 6: Labor 0.00 100.00 10.00 30.00 // 7: Wage // Graphs 0 0 1200 5 // 8: Market specs Q_(1000s) P // 9: Market names 0 0 70 40 // 10: MPPL axis specs 0 0 70 100 // 11: MRPL axis specs L // 12: MPPL and MRPL competitive names L_(1,000s) // 13: MPPL and MRPL monopoly axis names // Wage market supply effect F // 14: True or False `` Prob Specs ` Problem 0 Start Screen 1 - Monopsony: A Single Employer of Labor // 0: Title // Slider Visibility: DemConst DemCoef MPPLConst MPPLCoef LabSupConst LabSupCoef Labor Wage L L L L N N B L // 1: Both, LabelOnly, ScrollbarOnly, Neither // Slider Default Reestablish T // 2: True or False // Radiobutton: CompVisible MonopVisible CompDefault T F T // 3: Good Market: True or False T T T // 4: Labor Market: True or False // Output Label Visibility // Good Market: Quantity Price NbrOfFirms T T T // 5: True or False // Labor Market: MEL MPPL MRPL T T T // 6: True or False // Firm: QuantityFirm MarRev MarCost Profit T T T T // 7: True or False // Graph Visibility T T T // 8: Market, MPPL, MRPL // Curves: DemGood SupGood E E // 9: Trace, Entire, None // Curves: MEL MPPL MRPL E E E // 10: Trace, Entire, None // Curves: DemLabor SupLabor N N // 11: Trace, Entire, None ` Text Start // 12: Text `RED`BLDObjective:`BLD Illustrate how a monopsony labor market affects firm's profit maximizing quantity of labor.`BLK We begin with our benchmark case: a perfectly competitive equilibrium. Both the good and labor market are perfectly competitive as indicated by the radio buttons. `IND`0x2022 The wage equals $30.00. `0x2022 The firm hires 25 units of labor. `0x2022 The firm produces 500 units of output. `0x2022 In total, 1,000 firms produce 500,000 units. `IND Next, select the monopsony radio button. The labor supply curve and the marginal expense of labor curve now appear. `IND`BLDQuestion:`BLD Why does the marginal expense of labor exceed the wage? `IND Using the labor scrollbar (the horizontal scrollbar) find the firm's profit maximizing quantity of labor. `IND`BLDQuestion:`BLD When a monopsony exist will the firm hire more or less labor? ` Prob End ` Problem 1 Start Screen 2 - Monopoly Goods Market: A Single Producer of the Good // 0: Title // Slider Visibility: DemConst DemCoef MPPLConst MPPLCoef LabSupConst LabSupCoef Labor Wage L L L L N N B L // 1: Both, LabelOnly, ScrollbarOnly, Neither // Slider Default Reestablish T // 2: True or False // Radiobutton: CompVisible MonopVisible CompDefault T T T // 3: Good Market: True or False T F T // 4: Labor Market: True or False // Output Label Visibility // Good Market: Quantity Price NbrOfFirms T T T // 5: True or False // Labor Market: MEL MPPL MRPL T T T // 6: True or False // Firm: QuantityFirm MarRev MarCost Profit T T T T // 7: True or False // Graph Visibility T T T // 8: Market, MPPL, MRPL // Curves: DemGood SupGood E E // 9: Trace, Entire, None // Curves: MEL MPPL MRPL E E E // 10: Trace, Entire, None // Curves: DemLabor SupLabor N N // 11: Trace, Entire, None ` Text Start // 12: Text `RED`BLDObjective:`BLD Illustrate how a monopoly good market affects firm's profit maximizing quantity of labor.`BLK Again, we begin with our benchmark case: a perfectly competitive equilibrium. Both the good and labor market are perfectly competitive as indicated by the radio buttons. `IND`0x2022 The wage equals $30.00. `0x2022 The firm hires 25 units of labor. `0x2022 The firm produces 500 units of output. `0x2022 In total, 1,000 firms produce 500,000 units. `IND Next, select the monopoly radio button. The monopoly's marginal revenue curve now appears. `IND`BLDQuestion:`BLD Why does the marginal revenue product of labor curve shift down? `IND Using the labor scrollbar (the horizontal scrollbar) find the firm's profit maximizing quantity of labor. `IND`BLDQuestion:`BLD Does the monopoly firm hire more or less labor? ` Prob End """ } ` Problem Wage Supply Effect Start Screen - The Wage, the Equilibrium Price, and the Marginal Revenue Product Curve // 0: Title // Slider Visibility: DemConst DemCoef MPPLConst MPPLCoef LabSupConst LabSupCoef Labor Wage L L L L N N B B // 1: Both, LabelOnly, ScrollbarOnly, Neither // Slider Default Reestablish T // 2: True or False // Radiobutton: CompVisible MonopVisible CompDefault T T T // 3: Good Market: True or False T T T // 4: Labor Market: True or False // Output Label Visibility // Good Market: Quantity Price NbrOfFirms T T T // 5: True or False // Labor Market: MEL MPPL MRPL F T T // 6: True or False // Firm: QuantityFirm MarRev MarCost Profit T T F F // 7: True or False // Graph Visibility T T T // 8: Market, MPPL, MRPL // Curves: DemGood SupGood E E // 9: Trace, Entire, None // Curves: MEL MPPL MRPL F E E // 10: Trace, Entire, None // Curves: DemLabor SupLabor N N // 11: Trace, Entire, None ` Text Start // 12: Text `RED`BLDObjective:`BLD Illustrate that a change in the wage affects the firm's marginal revenue product curve.`BLK Recall that the relationship between the marginal revenue product, the marginal physical product, and marginal revenue: MRPL = MPPL x MR At first glance there appears that marginal revenue product has no relationship to the wage. But consider what happens in the good market when the wage increase. An increase in the wage shifts marginal cost curves of all the firms up. `BLDQuestion:`BLD What happens to the individual firm's supply curve? `BLDAnswer:`BLD The individual firm's supply curve shifts left. `BLDQuestion:`BLD What happens to the market supply curve? `BLDAnswer:`BLD The market supply curve shifts left because it the horizontal sum of the individual firm's supply curve. `BLDQuestion:`BLD What happens to the equilibrium price and the firm's marginal revenue? `BLDAnswer:`BLD It increases. `BLDQuestion:`BLD What happens to the marginal revenue product curve? Explain. Test your logic by adjusting the wage scrollbar (the vertical scrollbar) to increase the wage. ` Prob End """ } ` Problem Testing Start Screen Testing - All Options Available // 0: Title // Slider Visibility: DemConst DemCoef MPPLConst MPPLCoef LabSupConst LabSupCoef Labor Wage B B B B B B B B // 1: Both, LabelOnly, ScrollbarOnly, Neither // Slider Default Reestablish T // 2: True or False // Radiobutton: CompVisible MonopVisible CompDefault T T T // 3: Good Market: True or False T T T // 4: Labor Market: True or False // Output Label Visibility // Good Market: Quantity Price NbrOfFirms T T T // 5: True or False // Labor Market: MEL MPPL MRPL T T T // 6: True or False // Firm: QuantityFirm MarRev MarCost Profit T T T T // 7: True or False // Graph Visibility T T T // 8: Market, MPPL, MRPL // Curves: DemGood SupGood E E // 9: Trace, Entire, None // Curves: MEL MPPL MRPL E E E // 10: Trace, Entire, None // Curves: DemLabor SupLabor E E // 11: Trace, Entire, None ` Text Start // 12: Text [Insert text here.] ` Prob End ` Problem 0 Start Screen 0 - Test // 0: Title // Slider Visibility: DemConst DemCoef MPPLConst MPPLCoef LabSupConst LabSupCoef Labor Wage L L L L L L B B // 1: Both, LabelOnly, ScrollbarOnly, Neither // Slider Default Reestablish T // 2: True or False // Radiobutton: CompVisible MonopVisible CompDefault T T T // 3: Good Market: True or False T T T // 4: Labor Market: True or False // Output Label Visibility // Good Market: Quantity Price NbrOfFirms T T T // 5: True or False // Labor Market: MEL MPPL MRPL T T T // 6: True or False // Firm: QuantityFirm MarRev MarCost Profit T T T T // 7: True or False // Graph Visibility T T T // 8: Market, MPPL, MRPL // Curves: DemGood SupGood E E // 9: Trace, Entire, None // Curves: MEL MPPL MRPL E E E // 10: Trace, Entire, None // Curves: DemLabor SupLabor N N // 11: Trace, Entire, None ` Text Start // 12: Text Test. `` Prob End