THIS IS ALL ONE QUESTION Assume the firm is a monopolist: Demand for labor is VMP...
THIS IS ALL ONE QUESTION
Assume the firm is a monopolist: Demand for labor is VMP = 35 – 0.004E, supply of labor is w = 5 + 0.01E, and Marginal cost of hiring workers is MC = 5 + 0.02E
a. How much labor does the firm hire and at what wage when there is no minimum wage?
b. How much labor would be employed if this was a perfectly competitive market?
c. Draw the diagram and show the deadweight loss? Mark the point on the diagram where employment would be if this was a competitive industry.
d. What is the size of the deadweight loss (DWL)?
e. How much labor does the firm hire and at what wage when it must pay a minimum wage of $25?
f. What minimum wage should the government set to eliminate the DWL?
g. What would be the effect of minimum wage that is set beyond the min. wage found in part d?
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THIS IS ALL ONE QUESTION
Assume the firm is a monopolist: Demand for labor is VMP...
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where...
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production. Hint: To answer the following questions, it may be helpful to draw a graph! What quantity should the monopolist produce in order to maximize profit? What price should the monopolist charge in...
Answer all the following questions: The individual firm operating in a perfectly competitive labor market faces...
Answer all the following questions:
The individual firm operating in a perfectly competitive labor market faces an inelastic demand for labor. will pay less to the additional labor employed. can buy all the labor it wants at the going market wage rate. can hire more labor only by offering a higher wage.
VMP MRP Labor WageTP MP ATP 3 $6 200 AL MCL ATCL AL MP*P MP*MR $...
VMP MRP Labor WageTP MP ATP 3 $6 200 AL MCL ATCL AL MP*P MP*MR $ $ 4 $7 260 60 $10 180 180 $ $ 5 $8 295 35 $105 12 105 $ $ $ 6 $9 315 20 14 60 60 $ $ 7 $10 326 $33 11 16 33 $ $ $ 8 $11 332 6 18 18 18 $ $ $ 9 $12 333 1 20 3 3 The table above shows the relationship between additional...
A monopolist faces a demand curve given by P = 200-10Q
A monopolist faces a demand curve given by P = 200-10Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $60. There are no fixed costs of production.A) What quantity should the monopolist produce in order to maximize profit?B) What price should the monopolist charge in order to maximize profit?C) How much profit will the monopolist make?D) What is the deadweight loss created by this monopoly...
Suppose a profit maximizing monopolist has total cost and marginal cost as follow:
Suppose a profit maximizing monopolist has total cost and marginal
cost as follow:1. Suppose a profit-maximizing monopolist has total cost and marginal cost as follow: \(\mathrm{TC}=0.1 Q^{2}+Q+10\) and \(\mathrm{MC}=0.2 Q+1\). It faces the demand curve \(\mathrm{Q}=35-5^{\mathrm{P}} .(35\) points \()\)a) What are the price, output, and profit for this monopolist?b) Carefully draw the diagram that illustrates your answers.c) What are the equilibrium price, output, and total profit if this is a perfectly competitive market?d) Compare the results between monopoly and perfect...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the price of labor measured by the hour- ly wage) and the demand for labor is Q 240 20W. Q measures the quantity of labor hired (in thousands of hours). a. What is the equilibrium wage and quantity of low-skilled labor working in equilibrium? b. If the government passes a minimum wage of $9 per hour, what will the new quantity of labor...
Using the graphs below, how many units of labor will a representative firm in a perfectly...
Using the graphs below, how many units of labor will a
representative firm in a perfectly competitive industry hire if the
market wage equals $10?
Concept Question 2.2 Question Help Using the graphs below, how many units of labor will a representative firm in a perfectly competitive industry hire if the market wage equals $107 The labor market A representative firm Wage rate ($) Wage rate ($) O MRP. 0 16 32 48 64 80 Units of labor tens of...
4. Suppose a firm uses only one input (L) to produce output y, with the production...
4. Suppose a firm uses only one input (L) to produce output y, with the production function y L Suppose the firm sells its output in a competitive market at price p, and buys labor in a competitive market at price w. a. Write an expression for the profits of the firm as a function of w, p, and L. b. What is the marginal cost of hiring an additional unit of labor? Graph the marginal cost of labor curve...
Please explain in details with step by step solution, Thank you very much ) Assume a...
Please explain in details with step by step solution, Thank you
very much
) Assume a monopolist faces a market demand curve P 100 - 2Q and has the short-run total cost function C 640+20Q. i) What is the profit-maximizing level of output? What is the profits? Graph the marginal revenue, marginal cost, and demand curves, and show the area that (7 Marks) In Question f (i), what would price and output be if the firm priced at socially represents...
b) How much output should the monopolist produce in order to maximize profit? c) How much...
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production. Hint: To answer the following questions, it may be helpful to draw a graph! What quantity should the monopolist produce in order to maximize profit? What price should the monopolist charge in...
Answer all the following questions:
The individual firm operating in a perfectly competitive labor market faces an inelastic demand for labor. will pay less to the additional labor employed. can buy all the labor it wants at the going market wage rate. can hire more labor only by offering a higher wage.
VMP MRP Labor WageTP MP ATP 3 $6 200 AL MCL ATCL AL MP*P MP*MR $ $ 4 $7 260 60 $10 180 180 $ $ 5 $8 295 35 $105 12 105 $ $ $ 6 $9 315 20 14 60 60 $ $ 7 $10 326 $33 11 16 33 $ $ $ 8 $11 332 6 18 18 18 $ $ $ 9 $12 333 1 20 3 3 The table above shows the relationship between additional...
Suppose a profit maximizing monopolist has total cost and marginal
cost as follow:1. Suppose a profit-maximizing monopolist has total cost and marginal cost as follow: \(\mathrm{TC}=0.1 Q^{2}+Q+10\) and \(\mathrm{MC}=0.2 Q+1\). It faces the demand curve \(\mathrm{Q}=35-5^{\mathrm{P}} .(35\) points \()\)a) What are the price, output, and profit for this monopolist?b) Carefully draw the diagram that illustrates your answers.c) What are the equilibrium price, output, and total profit if this is a perfectly competitive market?d) Compare the results between monopoly and perfect...
6. Low-skilled workers operate in a competitive market. The labor supply is Q 10W (where W is the price of labor measured by the hour- ly wage) and the demand for labor is Q 240 20W. Q measures the quantity of labor hired (in thousands of hours). a. What is the equilibrium wage and quantity of low-skilled labor working in equilibrium? b. If the government passes a minimum wage of $9 per hour, what will the new quantity of labor...
Using the graphs below, how many units of labor will a
representative firm in a perfectly competitive industry hire if the
market wage equals $10?
Concept Question 2.2 Question Help Using the graphs below, how many units of labor will a representative firm in a perfectly competitive industry hire if the market wage equals $107 The labor market A representative firm Wage rate ($) Wage rate ($) O MRP. 0 16 32 48 64 80 Units of labor tens of...
4. Suppose a firm uses only one input (L) to produce output y, with the production function y L Suppose the firm sells its output in a competitive market at price p, and buys labor in a competitive market at price w. a. Write an expression for the profits of the firm as a function of w, p, and L. b. What is the marginal cost of hiring an additional unit of labor? Graph the marginal cost of labor curve...
Please explain in details with step by step solution, Thank you
very much
) Assume a monopolist faces a market demand curve P 100 - 2Q and has the short-run total cost function C 640+20Q. i) What is the profit-maximizing level of output? What is the profits? Graph the marginal revenue, marginal cost, and demand curves, and show the area that (7 Marks) In Question f (i), what would price and output be if the firm priced at socially represents...
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
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