The term -H₂ in the utility function of the monopsonist reflects a distaste for having employees of type 2. What are the monopsonist's utility-maximizing choices of w₁ and w2?
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- Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage rate required at each level of employment. What is the monopsonists marginal cost of labor at each level of employment? If each unit of labors marginal revenue product is 13, what is the firms profit maximizing level of employment and wage?Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is 20, what is the films profit maximizing level of employment?Firm MFC $20 18 Supply Labor 16 14 12 10 MRP = Demand 8. 0 1 2 3 Workers 4 per day The graph above displays a monopsony in the labor market. Use the graph to answer the following questions: A. Assume the monopsonist is profit-maximizing. The monopsonist should set the wage to [Select] to reach the goal of hiring [ Select ] workers. MAY Dollars per
- Given the labor demand function (9)-/+cq where I(9) is labor demanded, is the fixed cost of production and cis the constant marginal cost. Assume weg wf, • Derive p by maximizing profit. . If you are given that we are following Dixit Stiglitz's demand system how would you comment upon the economy of scope and the vanety produced?Suppose the market supply is given by L=2.8w. Assume the product market is competitive and the product price is p=$12. Also suppose MPL=8.6-0.8L and that the firm has monopsony power. A.Graph the marginal revenue product of labour. The slope of this curve is equal to The vertical intercept of this curve is equal to .Write the formula for the inverse supply of labour and graph the supply curve. The slope of this supply curve is B. For this firm, the fully simplified formula for marginal cost is MC₁ = __ L (Enter the value which completes the formula. Do not enter the variable, it has been given) Illustrate this market graphically, including accurate numbers for slopes and intercepts. Write the condition which the monopsonist's optimal choice of labour must satisfy. This monopsonist will choose employment level . At this employment level, the firm will offer the wage $ , and the value marginal product of labour is $ The average cost of labour for this monopsonist is $ and the firm's…4 A production function is states as: 120Q1/3, with an output price of 25. Firms total revenue is stated as 11000Q1/2 with a labor supply of Q=15w. If you derive the monopsony equilibrium labor and monopsony wage what would they be.
- The monopsony's labor supply is w= 200 +4L. Which of the following is the firm's marginal expenditure equation? OA. ME=100+6L OB. ME=200+ BL e ⒸC. ME=800+8-L OD. ME=400+24L As Re Ni Assuming the demand for labor is w=400-4L, the monopsony wage will be places). St M than the competitive market wage by $ (round your answer to two decimal higher lowerWage Rate WA W₂ W₁ Q₂ MFC O₂ MRP Labor Supply 82) In the above figure, what is the quantity of workers that would be hired by a monopsonist? A) Q1 B) Q₂ C) Q3 D) Q43 ped Wage Rate W We W 0 Qe Quantity of Labor Multiple Choice Refer to the graph. A monopsonist will set the wage at MRC Wu a rate that cannot be determined from the graph. Wm D₁ = MRP We
- The demand for unionized labor will generally be more elastic, and it will be more difficult for the union to achieve above-equilibrium wages, when: O there are few close substitutes for the unionized workers. O trade barriers limit the importation of the product produced by the unionized workers. O the cost of employing the unionized workers is a small part of the total cost of product that they produce. the demand for the product produced by the unionized workers is relatively price elastic. A strike, or the threat of one, is most likely to be effective when: O demand for the firm's product is weak. O foreign competition for the product is high. O the firm has a low product inventory. O demand for the product produced by the union workers is highly elastic.Question Three Assume that the labour market is characterized by monopsony power. Illustrate and explain how the government can maximize employment levels by imposing a minimum wage. The marginal revenue product of labor at the local sawmill is MRPL = 20 - 0.5L, where L = the number of workers. If the wage of sawmill workers is K10 per hour, then how many workers will the mill hire? What factors that determine demand for labour by the firm? Who are the main actors in the labour markets? What are their roles?If the labor market were a monopsony, would the monopsonist hire more, fewer, or the same number of workers as Que to maximize its profit?