Why does the MCe differ from the wage in a monopsony market?
Homework Answers
A monopsonist is a profit maximising firm which chooses the adjust number of labour to acquire by contrasting its lower wage consequence of work with its minor cost of work. Since the monopsonist is the fundamental demander of work in the market, it can pay remuneration underneath the minimum wage consequence of work and to contract less workers so as to reduce social welfare of the economy and earn profits. The negligible cost of utilizing one more laborer will be higher than the normal cost in light of the fact that to utilize one additional labour the firm needs to expand the wages of all labours and hence the MCS is different from wage in a monopsonist market.
9. Suppose that a monopsony faces a labor supply curve of Ls-2+2w. What wage does the...
9. Suppose that a monopsony faces a labor supply curve of Ls-2+2w. What wage does the firm paw if it wants to hire 10 workers? b. What is the marginal expense of hiring an 10 worker? c. Draw a sample (or the exact) Labor Supply curve. Now add in a sample, ME curve and MRP curve such that the equilibrium is at 10 workers and at the wage from part a. Label the equilibrium level of employment and the equilibrium...
Labour Demand with Monopsony in the Labour Market and Perfect Competition in the Output Market in...
Labour Demand with Monopsony in the Labour Market and Perfect Competition in the Output Market in Short Run. Suppose a monopsony has a production function Q = 2L. The firm sells its output in a perfectly competitive market at a price of $200 and its market supply of labor is w=20L. a. Determine the profit-maximizing level of employment and wage offered by the firm. b. Make a diagram. Explain why Marginal Cost of Labour increases at a faster rate than...
H- 10. Consider a firm who is the only employer in a small town (a labor monopsony). The labor market curves they face...
H- 10. Consider a firm who is the only employer in a small town (a labor monopsony). The labor market curves they face are given below. Wage E------- -----ME ---------- --- -- ---+--- - ----+- +--- - - --+ --- - --+ t-- ----- *---* - 3 4 5 6 QUANTITY (100s hrs) a. (3 points) How many hours of labor does the firm employ? b. (2 points) What wage do the firms pay? C. (3 points) Calculate the deadweight...
What do you understand by market structure and how does the four market structures differ from...
What do you understand by market structure and how does the four market structures differ from each other in terms of 1) Product type, pricing, non-price competition, entry and exit, and number of firms? What are the reasons why a monopolist will practice price discrimination? Cite the source of your information and also respond to a post. Read through your post before posting.
How does a sociological perspective on market structure differ from an economist's perspective?
How does a sociological perspective on market structure differ from an economist's perspective?
What is personnel screening and why is it important and how does it differ from the...
What is personnel screening and why is it important and how does it differ from the clearance process?
The graph below shows a monopsony labor market. In the absence of any regulations, which of...
The graph below shows a monopsony labor market. In the absence of any regulations, which of the following represents the number of workers the firm will hire and the wage rate it will offer to those workers? 2 60 Marginal Factor Cost 50 45 40 35 30 25 20 15 10 Supply of Labor Marginal Revenue Product 0 5 10 15 20 25 30 35 40 45 50 55 60 NUMBER OF WORKERS PER DAY Number of Workers 15; Wage...
What is a free market? Is what ways does a free market economy differ from a...
What is a free market? Is what ways does a free market economy differ from a centrally planned economy? The answer to each discussion board must be at least 250 words – that is the minimum required to fully answer the questions. Each answer must demonstrate critical thinking and writing at a college level.
What is an “emerging market?” How does it differ from a “developing country?” Discuss the differences...
What is an “emerging market?” How does it differ from a “developing country?” Discuss the differences and indicate how this impacts doing business in either an emerging market or a developing country.
9. Suppose that a monopsony faces a labor supply curve of Ls-2+2w. What wage does the firm paw if it wants to hire 10 workers? b. What is the marginal expense of hiring an 10 worker? c. Draw a sample (or the exact) Labor Supply curve. Now add in a sample, ME curve and MRP curve such that the equilibrium is at 10 workers and at the wage from part a. Label the equilibrium level of employment and the equilibrium...
Labour Demand with Monopsony in the Labour Market and Perfect Competition in the Output Market in Short Run. Suppose a monopsony has a production function Q = 2L. The firm sells its output in a perfectly competitive market at a price of $200 and its market supply of labor is w=20L. a. Determine the profit-maximizing level of employment and wage offered by the firm. b. Make a diagram. Explain why Marginal Cost of Labour increases at a faster rate than...
H- 10. Consider a firm who is the only employer in a small town (a labor monopsony). The labor market curves they face are given below. Wage E------- -----ME ---------- --- -- ---+--- - ----+- +--- - - --+ --- - --+ t-- ----- *---* - 3 4 5 6 QUANTITY (100s hrs) a. (3 points) How many hours of labor does the firm employ? b. (2 points) What wage do the firms pay? C. (3 points) Calculate the deadweight...
The graph below shows a monopsony labor market. In the absence of any regulations, which of the following represents the number of workers the firm will hire and the wage rate it will offer to those workers? 2 60 Marginal Factor Cost 50 45 40 35 30 25 20 15 10 Supply of Labor Marginal Revenue Product 0 5 10 15 20 25 30 35 40 45 50 55 60 NUMBER OF WORKERS PER DAY Number of Workers 15; Wage...
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