Question

In: Economics

1. If the monopsony firm is a single-wage firm, then to hire more workers, the firm...

1. If the monopsony firm is a single-wage firm, then to hire more workers, the firm _____.

a. must reduce wages

b. must pay the new workers more

c. must raise the wages of all workers

d. will not change any wage

2. The local tennis stadium has a fixed number of seats for spectators. The equilibrium price to attend games for the Men's Championship is $15 and for Women's Championship is $25. Which of the following is true?

a. Women's games must be more expensive to stage than men's games.

b. The demand to attend women's games must be greater than that to attend men's games.

c. The supply of men's games must be less elastic than the supply of women's games.

d. The demand to attend women's games must be less than that to attend men's games.

3. Oligopolies face constraints like other markets; however, the one difference is that oligopolies face _____.

a. a vertical demand curve

b. a horizontal demand curve

c. a positively sloped demand curve

d. reactions of rival firms

4. Two or more oligopoly firms that act jointly is called a _____.

a. joint oligopoly

b. concentration

c. cartel

d. collision

5. Compared to a perfectly competitive industry with similar costs and demand, the single-price monopoly will produce _______ and its deadweight loss will be _______.

a. more; greater

b. more; less

c. less; greater

d. less; less

Expert Solution

Answer : 1) The correct option is c.

Because as monopsony has a single wage power and want to increase the labour input level then this increase the labour market demand which lead to raise the wage level and monopsony firm always pay the same wage rate to all workers. This means if monopsony firm want to employ more workers then the firm increase the wage rate for all workers.

2) The correct option is a.

As number of seats are fixed and the attending price of men's championship is lower than the women's championship, then this means that the women's game is more expensive than the men's game in stage.

3) The correct option is d.

Because in oligopoly market no firm can ignore the reaction of rival firms. For example , if a firm reduce the price level then the rival firm will reduce more the price level to increase the market demand.

4) The correct option is d.

By collusion the oligopoly firms agree to not compete with each other in some cases by which all firms in oligopoly market makes more profit.

Rahul Sunny answered 2 years ago

A monopsony hire one worker at a wage of $6, two workers at a wage of...

A monopsony hire one worker at a wage of $6, two workers at a wage of $7 each, (by adding one worker each will cause a one dollar increase to the wage). If the marginal revenue product for all workers is $17, asking how much will the wage to pay?

A firm that wants to employ workers should a. hire workers as long as the wage...

A firm that wants to employ workers should a. hire workers as long as the wage is less than the value of the marginal product. b. not hire workers if the value of the marginal product is less than the wage. c. hire workers as long as the wage is lower than the marginal profit of the last or previously hired worker. d. hire workers as long as the wage is greater than the value of the marginal product.

How many workers will the firm hire if the market wage rate is $28.75?

Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market.UnitsoflaborTotalproductMarginalproductProductpriceTotalrevenueMarginalrevenueproduct01234560213853647175$3.753.753.753.753.753.753.75Complete the table above and Answer the following Question:How many workers will the firm hire if the market wage rate is $28.75? Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates.

Suppose the wage increases. Show that in the long run the firm will hire fewer workers....

Suppose the wage increases. Show that in the long run the firm will hire fewer workers. Decompose the employment change into substitution effect and scale effects.

The MCE exceeds the wage for a monopsony firm: A. because the government imposes higher costs...

The MCE exceeds the wage for a monopsony firm: A. because the government imposes higher costs on monopsony firms. B. the firm is the only seller of the good. C. because the monopsony firm faces a downward sloping demand curve for its product. D. a firm must pay a higher wage not just to an additional worker but to all other workers when a new worker is hired. The minimum wage is less effective as a policy tool than other...

how do firms decide how to hire workers at different wage rates?

We know that a profit maximizing firm will hire workers as long as those workers generate...

We know that a profit maximizing firm will hire workers as long as those workers generate enough revenue to cover their wages. Why might a firm decide to pay an efficiency wage to workers? You should provide at least 2 reasons.

What is the final outcome for workers in a monopsony? Select one: a. Workers are paid...

What is the final outcome for workers in a monopsony? Select one: a. Workers are paid more and more workers are hired b. Workers are paid more, and fewer workers are hired c. Workers are paid less, and fewer workers are hired d. Workers are paid less, and more workers are hired

What is the BENEFIT to low wage workers (workers whose wage is near the minimum wage)...

What is the BENEFIT to low wage workers (workers whose wage is near the minimum wage) of raising the minimum wage?

A firm can hire 20 workers for $10 per hour, but finds it must raise the...

A firm can hire 20 workers for $10 per hour, but finds it must raise the wage to $12 to attract another worker. If it must pay all its workers the same wage, the marginal wage cost of the 21st worker is _. A.$10. B. $11. C. $21. D. $31.