Use Best Response Curve and Isocost Curve = Labor Discipline Model to analyze “game” between trucking...

Use Best Response Curve and Isocost Curve = Labor Discipline Model to analyze “game” between trucking companies and drivers.

Background: In the past drivers made by mileage between pick up and delivery points which gave drivers and incentive to maximize mileage, (i.e., drive from NYC to LA in two days in spite of safety rules limiting hours driven per day). Drivers previously recorded fake driving time data to show DOT, but now DOT requires Electronic Logging which operates while a truck is running and records miles and time. Electronic logging will reduce opportunity for drivers to maximize miles/income. Also, most drivers view time on the road away from home as work time. Trucking companies must bid against drivers opportunity costs of working elsewhere when unemployment is low.

Use the labor discipline model to show the effect on trucking companies of low unemployment and a tight market for workers in other industries.

Solutions

Expert Solution

This is my answer

Thank you...

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

Use Best Response Curve and Isocost Curve = Labor Discipline Model to analyze “game” between trucking...

Use Best Response Curve and Isocost Curve = Labor Discipline Model to analyze “game” between trucking companies and drivers. Background: In the past drivers made by mileage between pick up and delivery points which gave drivers and incentive to maximize mileage, (i.e., drive from NYC to LA in two days in spite of safety rules limiting hours driven per day). Drivers previously recorded fake driving time data to show DOT, but now DOT requires Electronic Logging which operates while a...

1. What is Labor Demand 2. Distinguish between an Isoquant Curve and an Isocost Curve. 3. ...

1. What is Labor Demand 2. Distinguish between an Isoquant Curve and an Isocost Curve. 3. Discuss the determinants of Price Elasticity of Demand. 4. Discuss the Marshall’s Rules of Derived Demand.

Consider the labor discipline model. According to the model, workers supply (extra) effort to make sure...

Consider the labor discipline model. According to the model, workers supply (extra) effort to make sure that they can keep a job that generates an employment rent. Explain in a few words how the following factors affect employment rent. (a) Unemployment benefits paid for a shorter duration of time. (b) Announcement that the plant where you work currently will close after six months. (c) A decline in the demand for the product that your company sells (d) The departure of...

Imagine a firm that only uses capital (K) and labor (L). Use an isocost / isoquant...

Imagine a firm that only uses capital (K) and labor (L). Use an isocost / isoquant diagram to illustrate the firm’s equilibrium input mix for given prices of capital and labor and a given rate of output. Now illustrate what happens if the price of labor falls, and the firm wants to produce the same rate of output. What happens to the cost of production? Compare the relative marginal products of labor and capital (the MRTS) at the two equilibria.

What is a Firm's best response function in an oligopsonistic labor market?

Please use Isoquant-isocost graph to explain. Thank You! remember: isoquant curve would not change, just need...

Please use Isoquant-isocost graph to explain. Thank You! remember: isoquant curve would not change, just need to generate Q1 level of electricity. here are asking about the changes in production cost •Suppose a power plant can use a mixture of coal and renewable resources to generate Q1 level of electricity. And the price of coal is Pc and price of renewable resources is Pr. Notice that the use of coal or renewable resources will subject to law of diminishing marginal...

use demand and supply model to analyze events on market

4) Describe the motivation for the migration of labor. In the simple model labor migrates between...

4) Describe the motivation for the migration of labor. In the simple model labor migrates between what two sets of countries? 5) Identify the winners and losers that result from labor migration. How does this relate to the Factor Endowment Trade Model?

1)What is called Best Response or Reaction Function in the context of the Cournot Oligopoly model?...

1)What is called Best Response or Reaction Function in the context of the Cournot Oligopoly model? Given the market demand curve faced by the Stackelberg duopolies P = 120 – 0.5QD MCA = $20 QD = QA + QB MCB = $34 Where the leader firm is Firm A and the follower is Firm B Hints: TRB = P * QB MRB = ¶TRB / ¶QB a)Anticipating Firm B’s reaction to its output level, what is the output level Firm...

Use the model of supply and demand for bonds to analyze the impact of each of...

Use the model of supply and demand for bonds to analyze the impact of each of the following on the equilibrium quantity of bonds outstanding and on equilibrium bond prices and yields. Check all the appropriate affects. a. The market expects the Fed to hike interest rates. What is the effect of long-term bonds? b. The price of Bitcoin becomes less volatile. What is the effect of long-term bonds? c. In response to tariffs announced on Chinese exports, China responds...

Subjects