Assume that the following table gives the production function and labor supply curve for a non-discriminating...

Expert Solution

The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function.

A non-discriminating monopsonist faces the following inverse supply curve:

assume that the following table represents the daily supply of labor at a shirt factory in...

The following table gives capital and labor requirements for 10 different levels of production. q K...

The market supply curve for labor is upward sloping and the market demand curve for labor...

For each of the following events, assume that either the supply curve or the demand curve...

Wage Subsidy for fast food workers. For this entire problem, assume that the labor supply curve...

A monopsonist has a labor supply curve of =10+L and marginal product of labor curve of...

Draw a steep labor supply curve and a less steep labor demand curve on a set...

State whether the labor supply curve, labor demand curve or neither of the two will shift...

Question

Assume that the following table gives the production function and labor supply curve for a non-discriminating monopsonist employer. Assume that the monopsonist receives $4 for each unit sold.

a) Fill in the missing values in the table and sketch SL, MRP and MLC in a graph.

b) Find the profit maximizing level of employment

c) How would your answer to part (b) change if the employer were a perfectly discriminating monopsonist?

d) In what sense does a non-discriminating monopsonist exploit workers? In what way is this firm inefficient?

Rahul Sunny answered 1 year ago

Real wage rate (2009 dollars) Labor demand (billions of hours per year) Labor supply (billions of hours per year) 5 360 260 10 325 275 15 300 300 20 280 330 Employment (billions of hours per year) Real GDP (trillions of 2009 dollars) 100 2 200 3 300 3.8 400 4.4 The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function. What...

A non-discriminating monopsonist faces the following inverse supply curve:W = L^(3/2)The monopsonist’s production function is equal to the following:Q = 100L^(1/2)The monopsonist sells its output in a perfectly competitive market for P = 5. How many workers are employed? What is the wage that the workers are paid?

assume that the following table represents the daily supply of labor at a shirt factory in Haiti – and that labor’s marginal revenue product (MRP) is a constant amount of one hundred ten dollars ($110) per day over the relevant range of hiring considerations. QLabor W = ACF TCF MCF = ∆TCF/∆QLabor -------------------------------------------------------------------------------------------------------------- 30 $40/day $1,200 --------------------------------------------------------- $ 800/10 = $ 80 40 $50/day $2,000 --------------------------------------------------------- $1,000/10 = $100 50 ...

The following table gives capital and labor requirements for 10 different levels of production. q K L Total Cost Marginal Cost Average Variable Cost 0 0 0 Answers: 1 6 1 30 30 2 10 3 b. 3 13 5 c. 4 16 7 d. 5 20 9 6 25 11 7 31 13 8 38 15 9 46 17 10 55 19 Assuming that the price of labor (PL) is $6 per unit and the price of capital (PK)...

The market supply curve for labor is upward sloping and the market demand curve for labor is downward sloping yet for a single firm the demand curve is flat. Explain. I really dont need the answer, but if someone could explain what this is asking. I get that the market supply curve slopes upward and the demand curve slopes downward, but what exactly is the question getting at when it says a single firm is flat. Is it referring to...

For each of the following events, assume that either the supply curve or the demand curve (not both shifted). Explain which curve shifted and indicate the direction of the shift. a. From 1950 to 1979 the wages paid to fruit pickers increased while the number of fruit pickers employed decreased. b. During the same period the price of radio sets declined, while the number of radio sets purchased increased. c. Housing prices are rising but more houses are sold. d....

Wage Subsidy for fast food workers. For this entire problem, assume that the labor supply curve is very wage-inelastic, and that the labor demand curve is downward sloping but relatively wage-elastic, and the labor market is competitive. a. (3 points) Draw a supply and demand diagram to show this labor market with a highly elastic labor supply curve and a relatively inelastic labor demand curve. Label your diagram carefully. b. Senator R. McDonald (D-NY) proposes $1 per hour wage subsidy...

A monopsonist has a labor supply curve of =10+L and marginal product of labor curve of 20-L. If the price is set to 8, what is the wage the monopsonist has to pay?

Draw a steep labor supply curve and a less steep labor demand curve on a set of axes. Now suppose demand decreases. Label the old and new equilibria. Draw a cobwebbing path to show how wages and quantities of labor evolved to get from the old equilibrium to the new equilibrium.

State whether the labor supply curve, labor demand curve or neither of the two will shift in the current scenario when the government has mandated workplace closures. If there is a shift, is the shift to the left or to the right? Illustrate your answer with a figure and show what happens to the full-employment level of employment following the shifts, if any. Label the axes and curves clearly

Number of Workers

Output (per hour)

Wage (per hour)

Total Labour Cost