d. Monopolist.
VMPL is the value of product generated by one additional labor. This is equal to the product of price of good and the marginal product of labor.
In case of perfect competition, VMPL is equal to the wage rate at the level of labor hired. That is, labor is paid exactly equal to the value of the product they generate.
Here, the quantity of labor hired is 30000. At this level, VMPL is 25. But the wage paid to the labor is 12.5. So, wage paid to the labor is lesser than the value of product generated by the labor.
So, the firm is a monopolist in product market.
not sure how to answer part d 14.2. The figure below shows the supply of labor,...
please anwser all questions. thank you so much! Aa Aa Undershaft Industries is a monopsonist. The following graph shows the labor supply curve it faces (labeled "S"), its marginal revenue product curve (labeled "MRP"), and its marginal rèsource cośt curve (labeled MRC). WAGE (Dollars per hour 50 MR 40 MRP 30 20 10 10 20 30 40 QUANTITY OF LABOR INumber of werkersl Undershaft faces an upward-sloping above its labor supply curve. labor supply curve. Therefore, its marginal resource cost...
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...
Table 1 shows the labor market schedule and Table 2 shows the production Table 1 function schedule for the country of Moldovokia Quantity of labor Quantity of labor Real wage rate demanded supplied An increase in the population changes the quantity of labor supplied by 20 billion (2009 dollars per hour) 15 20 25 30 35 (billions of hours per year hours at each real wage rate What is the new potential GDP? Potential GDP is trillion 20 60 50...
38. An increase in the supply of labor с.increases the value of ~ginal Product of er and enes D. decreases the value of the marginal product of labor and increases the wage the wage. 39. A decrease in the demand for fish A. decreases the value of the marginal product of fishemen reduces their wage, and reduces employment in the fishing industry employment in the fishing industry employment in the fishing industry employment in the fishing industry B. increases the...
2. The table below shows the demand for and supply of skilled labor at different hourly wages. Demand for Labor Wage/Hour Quantity $12 75 Supply of Labor Wage/Hour Quantity $12 47 14 68 14 54 16 61 16 61 18 54 18 68 20 47 20 75 22 40 22 82 a. Draw the supply and demand curves for labor. b. What is the wage and quantity of labor at equilibrium? c. Suppose a law is passed forbidding employers to...
According to the marginal productivity theory of distribution, a) the market labor supply curve bends backward. b) labor distributes work hours evenly between the income and substitution effects. c) each input receives a payment equal to its marginal revenue product. d) as the wage rises in a particular profession, fewer people want to work in this profession because of the income effect Which of the following situations is a monopsomy? a) The buyer is a price searcher. b) The seller...
Really confused about this problem.Please tell me the answer as specific as possible!Thanks! 1. An employee of a firm has a job where the employee can easily adjust the number of hours they work for the employer per year. The employee is currently paid $40 per hour and will work 2000 hours in 2018. The employer had a good year in 2018 and is considering two changes in the employee's compensation for 2019. a) Suppose the employer decides to raise...
Question #3 (this involves the idea of labor and capital) PLEASE TYPE OUT THE ANSWER A firm produces output using the technology: Q = 5K0.33L0.5 where capital, K, is measured in machine-hours, labor, L, is measured in person-hours, and Q denotes the yearly output. The hourly wage rate in the United States WL = $10, and the hourly rental rate of capital (IN EFFECT CAPITAL COSTS $2 PER MACHINE HOUR) is WK = 2 and the Price is $10. Does...
Labor Economics, multiple choice questions 1. In the leisure-income model, the wage constraint shows a. the points that maximize a worker's utility b. all points that are equally preferred c. the wage rates that affect work decisions d. the available combinations of leisure and income 2. The slope of a wage constraint reflects the: a. rate at which a person is willing to substitute leisure for income c. income effect b. price of leisure d. substitution effect 3. When a...
2. The table below shows the total production for varying numbers of hours worked producing yo-yos. The firm sells its product and hires its workers in competitive markets. Price of Yo-Yos Number of Number of Hours Worked Yo-Yos Produced Wage Rate per Hour (S) 10 10 11 10 170 78 10 12 13 14 10 10 88 90 15 10 (a) Determine the marginal product of labour from hiring the (i) 11th worker, (ii) the 12th worker, (iii) the 13th...