Question

In: Economics

w = 50,000 + 10,000L where w is wages, L is the number of players The...

w = 50,000 + 10,000L

where w is wages, L is the number of players

The demand for players is given by the Marginal Revenue Product:

MRP = 500,000 – 20,000L

The Marginal Factor Cost to the club is :

MFC = $50,000 + 25,000L

If the NFL labor market were competitive, what would be the equilibrium number of players employed?

If the NFL labor market were competitive, what would be the equilibrium wage of a player?

We know that NFL labor market is a monopsony. Under a monopsony, what is the equilibrium number of players employed?

Under a monopsony, what is the equilibrium wage of a player?

Expert Solution

The labor supply equation: w = 50,000 + 10,000L

The labor demand equation: MRP = 500,000 – 20,000L

Under the conditions of perfect competition, the equilibrium is given by w = MRP

50000 + 10000L = 500000 - 20000L

30000L = 450000

L = 15

Thus, the equilibrium number of players employed = 15

The equilibrium wage of a player = w = 50,000 + 10,000L = 50,000 + 10,000*15

=$ 2,00,000

Hence, under perfect competition, the equilibrium wage of a player is $2,00,000

--------------------------------------------------------------------------------------------------------------------------------------------------------

Now, consider that the labor market is a monopsony market.

The equilibrium is given by MFC = MRP

50,000 + 25,000L = 500,000 – 20,000L

45000L = 450000

L = 10

Under a monopsony, the equilibrium number of players employed is 10

The equilibrium wage of a player follows from the labor supply curve. That is,

w = 50,000 + 10,000L

w = 50,000 + 10,000*10

w = 150000

Hence, under a monopsony, the equilibrium wage of a player is $1,50,000

Rahul Sunny answered 2 years ago

For a given language L = { w | na(w) + nb(w) = nc(w) } where...

For a given language L = { w | na(w) + nb(w) = nc(w) } where S = G = {a, b, c} Looking for answer to 3 Construct a PDA M that accepts L with S = G = {a, b, c} Show the sequence of instantaneous descriptions for the acceptance of acacbcbc by M in 1). Give a CFG G that generates L, L(G) = L.

write the dfa for Let L={w in {0,1}*| w is a binary number that is a...

write the dfa for Let L={w in {0,1}*| w is a binary number that is a multiple of 4}

Suppose an individual’s weekly labour supply is given by L = -10 + w, where L...

Suppose an individual’s weekly labour supply is given by L = -10 + w, where L is labour supply in hours and w is the hourly after-tax wage. Assume that firms are willing to pay a before-tax wage of $40/hr. In the absence of taxation, how many hours per week will the individual work? What are weekly earnings? Illustrate the choice in a diagram. [4] Suppose the government institutes a 25% tax on labour income. What is the after tax...

Given the language L={w| the number of a’s is greater than or equal to the number...

Given the language L={w| the number of a’s is greater than or equal to the number of b’s in w} a) Using the Pumping Lemma to prove L is not a regular language. b) Using closure property to prove L is not a regular language.

L= {w belongs to {0,1}* | the number of 0's is a prime number} . Prove...

L= {w belongs to {0,1}* | the number of 0's is a prime number} . Prove that the language L is not regular.

Suppose that the marginal product of labor is: MP = 100 – L, where L is the number of workers hired.

Suppose that the marginal product of labor is: MP = 100 – L, where L is the number of workers hired. You can sell the product in the marketplace for $50 per unit and the wage rate for labor is $100. How many workers should you hire?

The demand curve for gardeners is GD = 19 – W, where G = the number of gardeners, and W = the hourly wage. The supply curve is GS = 4 + 2 W.

The demand curve for gardeners is GD = 19 – W, where G = the number of gardeners, and W = the hourly wage. The supply curve is GS = 4 + 2 W.a. Graph the demand curve and the supply curve. What is the equilibrium wage and equilibrium number of gardeners hired?b. Suppose the town government imposes a $ 2 per hour tax on all gardeners. Indicate the effect of the tax on the market for gardeners. What is...

Let L ⊆ Σ ∗ and define S(L), the suffix-language of L, as S(L) = {w...

Let L ⊆ Σ ∗ and define S(L), the suffix-language of L, as S(L) = {w ∈ Σ ∗ | x = yw for some x ∈ L, y ∈ Σ ∗ } Show that if L is regular, then S(L) is also regular.

3. the production function is f(L, M)=4*(L^1/2) (M^1/2), where L is the number of units of...

3. the production function is f(L, M)=4*(L^1/2) (M^1/2), where L is the number of units of labor and M is the number of machines used. If the cost of labor is $49 per unit and the cost of machines is $25 per unit, then how much will be the total cost of producing 7 units of output ?

The market demand for labour is given by w = 28 – 0.05L, where w is...

The market demand for labour is given by w = 28 – 0.05L, where w is the wage rate ($/week) and L is the number of workers the firm want to employ. The market supply of labour is given by w = 2 + 0.05L, where w is the wage rate ($/hr) and L is the number of workers who want to work. What is the equilibrium wage rate? If the government introduces the minimum wage rate of $15.75/hr, what...