Question

In a noncompetitive labor market, the firm pays a wage that is less than the workers’...

In a noncompetitive labor market, the firm pays a wage that is less than the workers’ value of marginal product because

the labor supply curve is above the marginal cost of labor curve.

the firm’s objective is to minimize the wage rather than to maximize profits.

the marginal cost of labor curve is above the labor supply curve.

labor is supplied inelastically.

the firm’s labor demand curve is downward-sloping.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer

Option 3

the marginal cost of labor curve is above the labor supply curve

the marginal cost of the labor supply curve is above the labor supply curve, so the firm needs to pay at the marginal cost of labor equal to the wages as equilibrium wages.

Add a comment
Know the answer?
Add Answer to:
In a noncompetitive labor market, the firm pays a wage that is less than the workers’...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 32. Suppose that in a labor market, the substitution effect is less important in magnitude than...

    32. Suppose that in a labor market, the substitution effect is less important in magnitude than the income effect. As a result, A. the labor demand curve is upward sloping. B. the labor demand curve is downward sloping. C. the labor supply curve is upward sloping. D. the labor supply curve is downward sloping. can you explain?thank you

  • 26.1 A monopolist produces a good using only one factor, labor. There are constant returns to...

    26.1 A monopolist produces a good using only one factor, labor. There are constant returns to scale in production, and the demand for the monopolist's product is described by a downward- sloping straight line with slope -1. The monopolist faces a horizontal labor supply curve. If the monopolist chooses output to maximize profits, then the: (a) marginal cost of labor to the monopolist exceeds the wage. (b) marginal product of labor times price of output equals the wage. (c) marginal...

  • 3. This question is about the labor market for workers who produce widgets. A. Sketch this...

    3. This question is about the labor market for workers who produce widgets. A. Sketch this supply and demand model of the labor market for workers who produce widgets. Label the axes and the equilibrium wage and level of employment - B. Explain why the demand curve is downward sloping. -C. Explain why the supply curve is upward sloping - D. List one ceteris paribus factor in the supply curve. - E. List one ceteris paribus factor in the demand...

  • A firm is profit maximizing when O it pays less than the market wage it produces...

    A firm is profit maximizing when O it pays less than the market wage it produces as many units of output as it can it has maximized the difference between marginal revenue and marginal cost the additional revenue generated from the last worker hired just equals the wage.

  • The labor demand curve shows how many workers the firm is willing to hire A. at...

    The labor demand curve shows how many workers the firm is willing to hire A. at any particular time. B. at a particular amount of labor supplied. C. at any given wage. D. into high-skill jobs. E. when demand for the firm's output is low. In part labor economics concerns: A. How labor markets work. B.   The study of education decisions C. The study of how households decide where to live. D. The study of income inequality. E. All of...

  • 1. Under the perfectly competitive market structure, the demand curve of an individual firm is    [ Select...

    1. Under the perfectly competitive market structure, the demand curve of an individual firm is    [ Select ]    ["downward sloping", "unit-elastic", "perfectly inelastic", "perfectly elastic"]       meaning that the demand curve is also the [ Select ]   ["Marginal Cost curve", "average cost", "marginal revenue = Marginal costs", "marginal revenue curve"]       2. With a perfectly competitive firm the supply curve is: a) Marginal Product b) the marginal cost curve above the Average fixed Cost curve c) it has...

  • On a separate sheet of paper, draw a labor supply and demand diagram for a single...

    On a separate sheet of paper, draw a labor supply and demand diagram for a single firm in a competitive labor market. Remember, a competitive firm can hire as many workers as it likes at the market wage w* so supply of labor to the firm is horizontal. Label your axes, your supply and demand curves, and labor market equilibrium, w*, E*.   On a second graph, draw a labor supply and demand diagram for a non-discriminating monopsonist, where the monopsonist...

  • A standard efficiency wage model pays workers higher wages in order to increase worker efficiency. As...

    A standard efficiency wage model pays workers higher wages in order to increase worker efficiency. As a result, firm profits increase and there is a pool of involuntarily unemployed workers. This equilibrium comes about in part because Multiple Choice workers are unaware of the pool of unemployed workers as long as they keep their job. the firm agrees to not replace labor with capital. the firm pays workers according to a tournament. workers will do anything to be paid a...

  • price is less than the average variable cost and the marginal cost must be falling O...

    price is less than the average variable cost and the marginal cost must be falling O marginal cost is greater than marginal revenue. All this is contingent upon the conditions that the price is less than the average total cost and the marginal cost must be falling D Question 12 5 pts The demand curve of a typical firm in monopolistic competition is: O upward-sloping and less-elastic (steeper) than a perfectly competitive firm's demand curve. O downward-sloping and less-elastic than...

  • d segment of the labor supply of a ployer is downward sloping, then segment, the income...

    d segment of the labor supply of a ployer is downward sloping, then segment, the income effect dominates the substitution effect. b) For that segment, the substation effect dominates the income effect a) For that is no wage that equilibrates the market because the labor demand is also downward sloping. d) The labor supply for that player is completely elastic. 1.7 When a firm charges different prices for the same good in different segments of the market (i.e. for different...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT