Refer to the following diagram ofa monopsonistic labor market. MWC W3 W2 W, MRP Q, Q2 Q3 Labor If legislation set the minimum wage at W2, then employment A) would fall from its original monopsony level. B) would remain unchanged. C) would rise from its original monopsony level. D) may or may not change from its original monopsony level. 2. Refer to the folowing diagram of a competitive labor market. W, W2 W3 D. Labor Suppose the woge is currently W, and Li is the level of employment. Then we should expect the wage to A) rise and employment to rise, 0) rise and employment to fal. CI fol and employment to rise. D) fal and employment to fal. Wage Wage B.

Refer to the following diagram ofa monopsonistic labor market. MWC W3 W2 W, MRP Q, Q2 Q3 Labor If legislation set the minimum wage at W2, then employment A) would fall from its original monopsony level. B) would remain unchanged. C) would rise from its original monopsony level. D) may or may not change from its original monopsony level. 2. Refer to the folowing diagram of a competitive labor market. W, W2 W3 D. Labor Suppose the woge is currently W, and Li is the level of employment. Then we should expect the wage to A) rise and employment to rise, 0) rise and employment to fal. CI fol and employment to rise. D) fal and employment to fal. Wage Wage B.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 2SCQ: Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a...

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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?
Name some factors that can cause a shift in the demand curve in labor markets.
What is the marginal cost of labor for a firm that operates in a competitive labor market? How does this compare with the MCL for a monopsony?
Does a gap between the average earnings of men and women, or between whites and blacks, prove that employers are discriminating in the labor market? Explain briefly.
Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the film can sell output in the perfectly competitive market where it operates. What is the value of the marginal product at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage is 12, what is the films profit maximizing level of employment?
Will a free market tend to encourage or discourage discrimination? Explain briefly.
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