union A faces a firm's demand curve in which a wage of $4 per hour leads...

union A faces a firm's demand curve in which a wage of $4 per hour leads to demand for 20,000 employee hours, and a wage of $5 per hour leads to demand for 10,000 employee hours. union B faces a different firm's demand curve in which a wage of $5 per hour leads to demand for 40,000 employee hours, and a wage of $6 per hour leads to demand for 30,000 employee hours.

A)calculate own wage elasticity of demand for each union's firm.

B) which union faces the more elastic curve? which union will be more successful in increase the total income of its membership?

C) suppose union A faces a single buyer of labor. what is the name for this type of labor market? draw the graph for this type of labor market

D) list 2 features of labor supply which can lead to this type of labor market.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

Union A finds that a wage of $4 per hour leads to demand for 20,000 person...

Union A finds that a wage of $4 per hour leads to demand for 20,000 person hours and a wage of $5 per hour leads to demand for 10,000 person hours. Union B finds that a wage of $6 per hour leads to demand for 30,000 person hours, while a wage of $5 per hour leads to demand for 33,000 person hours. Which union faces the more elastic demand curve? Describe 2 Hicks-Marshall laws that might explain that union’s elasticity...

The inverse demand curve a monopoly faces is p = 100 - 2Q The firm's cost...

The inverse demand curve a monopoly faces is p = 100 - 2Q The firm's cost curve is C (Q) = 20 + 6Q What is the profit-maximizing solution? The profit-maximizing quantity is _______. (Round your answer to two decimal places.) The profit-maximizing price is $________. (Round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $________. (Round your answer to two decimal places.) How does your answer change if C(Q)...

The American Federation of Bricklayers union (AFB) faces a situation in which a wage of $16...

The American Federation of Bricklayers union (AFB) faces a situation in which a wage of $16 per hour results in a demand for 20,000 worker-hours, while a wage of $20 per hour results in a demand for 10,000 worker-hours. Elsewhere the International Brotherhood of Bricklayers union (IBB) faces a situation in which an $18 hourly wage results in a demand for 30,000 worker-hours, whereas a $15 hourly wage results in a demand for 33,000 worker-hours. 1.Which union faces the more...

4. Draw a firm’s labour demand curve that intersects the vertical axis at $20 per hour,...

4. Draw a firm’s labour demand curve that intersects the vertical axis at $20 per hour, and choose a point on the curve corresponding to an hourly wage of $12 and employment of 50 workers. a. Explain the significance of the labour demand curve, and show why such a curve is downward sloping. b. At the employment level of 50 workers, what is the total amount the employer pays in wages? c. At the employment level of 50 workers, what...

1.6 The inverse demand curve a monopoly faces is p=100-Q. The firm's cost curve is C(Q)...

1.6 The inverse demand curve a monopoly faces is p=100-Q. The firm's cost curve is C(Q) = 10 + 5Q(soMC = 5).What is the profit - maximizing solution? How does your answer change if C(Q) = 100 + 5Q? 1.10 The inverse demand curve a monopoly faces is p = 10Q^-0.5 a. What is the firm's marginal revenue curve? b. The firm's cost curve is C(Q) = 5Q. What is the profit - maximizing solution? 3.9 Consider the inverse demand...

Example 4: Suppose that the monopolist faces a demand curve for its widgets as q =...

Example 4: Suppose that the monopolist faces a demand curve for its widgets as q = 9 - 0.2p. The firm’s marginal revenue and cost functions are: MR(q) = 45 – 10q and MC(q) = 15 + 5q. The firm’s total cost function is C(q) = 2.5q2 + 15q + 3. How many widgets should the firm produce and sell so that the monopolist can maximize its profits? How much should the firm charge to each of its customers so...

A monopolist faces the demand curve P =11 Q, where P is measured in dollars per...

A monopolist faces the demand curve P =11 Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6 per unit. Answer the following questions, showing all workings. a) Calculate the monopolists profit-maximizing price and quantity. Calculate the monopolists profit. b) Draw the average and marginal revenue curves and the average and marginal cost curves for the monopolist including the area of profits (label the diagram accurately...

Which is the correct answer? A duopoly faces the demand curve D(p) = 30 - .5p....

Which is the correct answer? A duopoly faces the demand curve D(p) = 30 - .5p. Both firms in the industry have a total cost function given by C(q) = 4q. Suppose that firm 1 is a Stackelberg leader in choosing its quantity first. Firm 1’s profit function can be written as A q1 = 14 - .5q2. B q2 = 14 - .5q1. C 60q -q2. D 56q1 - q21. E 28q1 - q21. Explain your answer/Show how you...

1. Which statement below is FALSE? A A monopoly faces a downward-sloping demand curve for the...

1. Which statement below is FALSE? A A monopoly faces a downward-sloping demand curve for the good that it sells. B A single-price monopoly cannot sell further units of the good without cutting the price. C Total revenue is maximized where marginal revenue is zero. D In the short run, a single-price monopoly maximizes profit where average cost equals average revenue. E In the long run, a single-price monopoly seeking to maximize profit would exit the industry if average total...

1A) Describe the difference between the market demand curve and each firm's individual demand curve in...

1A) Describe the difference between the market demand curve and each firm's individual demand curve in perfect competition. 1B ) For a perfectly competitive firm, the marginal cost curve is the same thing as that firm’s supply curve starting from the minimum point on the average variable cost curve because at every possible price; by finding the intersection of MR (where, MR = Price = Demand) & MC we find the quantity that will be produced. The description of how...

Subjects