1. The workers provide the supply of labor to firms in exchange of wages.
2. Firms demand labor from workers in exchange for wages. Employers provide demand for labor.
3. Wages or wage rate provided by the employer is the price of the labor.
4. It is calculated by the total product of work done by the workers.
In the market for labor: Who supplies labor? (1 point) Who demands labor? (1 point) What...
In the market for loanable funds: a. Who supplies funds? (1 point) b. Who demands funds? (1 point) c. What is the price of funds? (2 point) d. How is the quantity of funds measured? (2 point)
Do you think the market for labor is perfectly competitive? Explain why or why not. (4 points Is it possible to get rid of all unemployment? Explain why or why not. (3 points)
3) In the market for bonds, who supplies the bonds and who demands the bonds?
What are the characteristics of a perfectly competitive market? Provide an original (not from text or notes) of a market that you think has these characteristics (and explain why you think this). a. Why are marginal revenue and price equal for a firm operating in a perfectly competitive market?
Homework Chapter 11 Due March 3 :30 12 List the four criteria for a market to be perfectly competitive G is perfectly competitive (or close to perfectly competitive a m e of a market that List the two criteria for how a monopoly arises. Give an example of a market that has monopoly for close to a monopoly Price 100 150 250 5000 What is the equilibrium price and quantity of this market is competitive Calculate producer surplus, consumer surplus,...
1) What are the requirements for perfect competition? 2) Define the shutdown point. Explain why the firm shuts down in the short run if the price falls below this point. 3) In the long run, perfectly competitive firms cannot make an economic profit. Why? 4) Describe how economic losses are eliminated in a perfectly competitive industry.
1. Assume a perfectly competitive market. Let C = Q3 - 4Q2 + 4Q be the cost function of a hypothetical firm. Find its supply function and specify the price and quantity at its lowest point. (Use this for questions 3 and 4) Let Q denote the quantity of pizza. A pizza producer has variable cost (VC) and fixed cost (FC) as VC = Q? FC = 4. 3. Assume a perfectly competitive market. What happens if the market price...
Chapter 12 1) What are the requirements for perfect competition? 2) Define the shutdown point. Explain why the firm shuts down in the short run if the price falls below this point. 3) In the long run, perfectly competitive firms cannot make an economic profit. Why? 4) Describe how economic losses are eliminated in a perfectly competitive industry.
1. What is a monopoly? Name 2 differences between a monopoly and a perfectly competitive market. 2. What is the profit maximizing condition for a price-setting monopoly? 3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide...
Orange Inc. sells cell phones in a perfectly competitive market in the short-run. Capital and labor are two resource factors used to produce the cell phones. Capital is fixed in the short-run but labor can vary. The market for hiring labor is a perfectly competitive market. Labor is measured in worker weeks. Each worker week costs $600 of wages and Orange Inc. can hire any number of worker weeks. Each cell phone is sold at a price of $200 and...