Wage Rate tion 20 Wo W₁ W₂ W3 0 Q3 MRC Q₂ Q₁ Employment O W₂, and Q₁ workers would be hired. OW₂, and Q₂ workers would be hired. ⒸW₁, and Q₁ workers would be hired. O W3, and Q1 workers would be hired. Supply Demand The graph shows a monopsonist labor market. ह What would the equilibrium wage rate and amount of workers hired be?

Wage Rate tion 20 Wo W₁ W₂ W3 0 Q3 MRC Q₂ Q₁ Employment O W₂, and Q₁ workers would be hired. OW₂, and Q₂ workers would be hired. ⒸW₁, and Q₁ workers would be hired. O W3, and Q1 workers would be hired. Supply Demand The graph shows a monopsonist labor market. ह What would the equilibrium wage rate and amount of workers hired be?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 2SCQ: Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a...

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Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is 20, what is the films profit maximizing level of employment?
Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage rate required at each level of employment. What is the monopsonists marginal cost of labor at each level of employment? If each unit of labors marginal revenue product is 13, what is the firms profit maximizing level of employment and wage?
Other than the demand for labor, what would be another example of a 'derived demand?
What is die price commonly called in the labor market?
Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
The diagram provides supply and demand curves for a competitive labour market it a labour union negobates the wage to W, in an otherwise competitive labour market OA employers will hire L, labour OB. employers will here labour at the level higher than L OC. the supply of labour will stay the same OD equilibrium will occur at W, and L OE the demand for labour will stay the same 0 Wage Rate W₁ Quarnty of Labour Supply Demand
Figure Al Wage MC $30 $23 $16 $12 8. 11 13 Labor Refer to Figure A1. What is the wage set by the monopsonistic employer and how many people do they hire? O $12 and 8 employees. O $16 and 11 employees. O $12 and 13 employees. O $23 and 8 employees.
Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
The monopsony's labor supply is w= 200 +4L. Which of the following is the firm's marginal expenditure equation? OA. ME=100+6L OB. ME=200+ BL e ⒸC. ME=800+8-L OD. ME=400+24L As Re Ni Assuming the demand for labor is w=400-4L, the monopsony wage will be places). St M than the competitive market wage by $ (round your answer to two decimal higher lower
Suppose that Congress passes a law requiringemployers to provide employees some benefit (suchas healthcare) that raises the cost of an employee by$4 per hour.a. What effect does this employer mandate haveon the demand for labor? (In answering this andthe following questions, be quantitative whenyou can.)b. If employees place a value on this benefit exactlyequal to its cost, what effect does this employermandate have on the supply of labor?c. If the wage can freely adjust to balance supply anddemand, how does this law affect the wage andthe level of employment? Are employers better orworse off? Are employees better or worse off?d. Suppose that, before the mandate, the wage in thismarket was $3 above the minimum wage. In thiscase, how does the employer mandate affect thewage, the level of employment, and the level ofunemployment?e. Now suppose that workers do not value themandated benefit at all. How does this alternativeassumption change your answers to parts(b) and (c)?
Give four explanations for why firms might find ii profitable lo pay wages above the level that balances quantity of labor supplied and quantity oflabor demanded.
A visiting American executive finds that a foreign subsidiary inBangladesh has hired a 12-year-old girl to work on a factoryfloor, in violation of the company's prohibition on child labour.He tells the local manager to replace the child and tell her to goback to school. The local manager tells the American executivethat the child is an orphan with no other means of support, andshe will probably become a street child if she is denied work. explain Cultural Relativist based on the statement given