4.Show how a company in a competitive labour market decides to set the number of workers...

4.Show how a company in a competitive labour market decides to set the number of workers they hire in the short run. What is the nature of the demand curve?

Expert Solution

Rahul Sunny answered 7 months ago

Suppose the government wants to help workers in a competitive labour market. Illustrate and explain how...

Suppose the government wants to help workers in a competitive labour market. Illustrate and explain how the government could do this by: a) imposing a minimum wage and b) by providing firms with a subsidy to hire workers. All else equal, which will have the greater impact on affected workers’ wage: a $2:00 increase in the minimum wage or a $2:00 subsidy?

When there is a decrease in the number of people in the labour market/workers, similar to...

When there is a decrease in the number of people in the labour market/workers, similar to that of the plague, how does technology help boost output? Please use a diagram to help me visualize it. Also with the decrease in the number of people, how did the economy behave? What were the significant events?

Now assume the government decides to set a price ceiling of $4 per gallon. Show and...

Now assume the government decides to set a price ceiling of $4 per gallon. Show and explain how this legal price affects your graph of the milk market. What objective could the government be trying to achieve by establishing such a price ceiling?

Assume that you are studying a perfectly competitive labour market. The demand for labour is given...

Assume that you are studying a perfectly competitive labour market. The demand for labour is given by W = 200 – L The supply for labour is given by W = 100 + L a) Calculate the wage rate in the market and illustrate in a diagram. b) If the wages becomes W = 175, what will happen in the market? Explain how the equilibrium will be reached and illustrate in a diagram. c) If the wages becomes W =...

Consider a perfectly competitive labour market, Labour Demand is given by LD = 105 – 5W,...

Consider a perfectly competitive labour market, Labour Demand is given by LD = 105 – 5W, and Labour Supply is given by LS = 10W, where W is the market wage rate. In order to stimulate employment in this industry, the government offers workers an additional $3 for each unit of labour worked. Find the new market equilibrium take-home wage for workers? A)11 B)8 C)5 D)10

consider a competitive labour market.the likely consequence of a binding minimum wage in the labour market...

consider a competitive labour market.the likely consequence of a binding minimum wage in the labour market is

How are wages set in the labor market? Are workers and companies Wage (price) setters or...

How are wages set in the labor market? Are workers and companies Wage (price) setters or wage (price) takers or both? Explain how a company or a worker can be a wage setter, while other companies and workers are wage takers. Hint: A wage setter is where the company/worker decide how much to pay/how much the wages should be and wage taker is where the company pays what the market wages are, no more or less.

Q16. In the competitive model of the aggregate labour market, the imposition of a minimum real...

Q16. In the competitive model of the aggregate labour market, the imposition of a minimum real wage that is greater than the competitive real wage will: (a) Make all labour force participants better off (b) Make all labour force participants worse off (c) Force businesses to pay a real wage that is greater than the marginal product of labour (d) Result in an excess demand for labour (e)None of the above Q19. In the competitive model of the labour market,...

Show by the use of a graph and explain the crowding hypothesis in the labour market.

1 Before Uber, how were prices set in NYC? Was it a competitive market?

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