1. What will be the competitive equilibrium wage rate and the level of employment?
Equilibrium wage = $________
Equilibrium level of employment = ________ units of labor
2. What will be the wage rate and the level of employment under monopsonistic conditions?
Equilibrium wage = $________
Equilibrium level of employment = ________ units of labor
3. By how much does the monoposonist reduce wages below the competitive wage? $__________
By how much does the monopsonist reduce employment below the competitive level? _______ workers
The answers given to me by other tutors were
1. $18
3 units
2. $20
no answer for the second part
3. $10
5 workers
These answers were all incorrect!
Assume a mis amongst that can heitsfest work for $6 but must increase the wage rate by $3 to attract each successive workers that the second worker must be paid $9 the third $12.and so on. The main revenue product of labor is given in the table below Units of Labor Marginal Revenue Product a Draw the firm's labor supply and marginal resource cost curves Instructions: Use the tool provided to draw the labor supply curve plot 6 points to...
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...
1. If a union enters a wage claim that exceeds the equilibrium wage, then we would expect a __________ of labor and __________ employment. A. surplus; increasing B. surplus; decreasing C. shortage; increasing D. shortage; decreasing 2. In a competitive labor market, if a union wishes to maximize employment for members, how should it negotiate a wage rate? A. Above the competitively established rate B. At the competitively established rate C. Below the competitively established rate D. That discriminates against...
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...
In the figure below, when employment is at the level at point C, the wage-setting curve lies below the price setting curve. Assume inflation is zero at point A In a competitive system, firms will begin to prices and this will start a process of Waresting curve Labour productivity Real profit per worker (High unemployment) Price setting curve (Low unemployment Real wage Real wage per worker Employment, N Employment at labour market equilibrium reduce inflation increase inflation Firms will cut...
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can someone explain please
Question 5 0/2 pts Which of the following is most likely to cause an increase in the inflation rate? a reduction in the percentage of workers who are in labor unions an increase in competition between firms an increase in the non-labor costs of production an increase in the unemployment rate Rising unemployment tends to put downward pressure on wages and prices. In the figure below, when employment is at the level at point C, the...
Why might some firms voluntarily pay workers a wage
above the market equilibrium, even in the presence of surplus
labor? Check all that apply.
Higher wages cause workers to shirk more of their
responsibilities.
Paying higher wages tends to reduce the average
experience level of a firm's workers.
Paying higher wages encourages workers to be more
productive.
Higher wages attract a more competent pool of
workers.
Attempts: Average: 1 7. The theory of efficiency wages Why might some firms voluntarily...