4. In a small isolated town in the Rocky Mountains the only firm that hires workers is a loggingcompany. The firm's demand for labor and the town's supply of labor are as follows:WageQuantity SupplicdQuantity Demanded$12022040200360180480160510014012012071401008.16080180601020040a. How much labor will this profit maximizing monopsonist hire? (Assume that labor can onlybe hired in blocks of 20 units)b. What wage will the monopsonist pay to its workers?

In a competitive market, the labour demand curve and the labour supply curve determines the wages…

4. In a small isolated town in the Rocky Mountains the only firm that hires workers is a logging company. The firm's demand for labor and the town's supply of labor are as follows: Wage Quantity Supplied Quantity Demanded $1 20 220 2 40 200 3 60 180 4 80 160 5 100 140 6. 120 120 100 80 7 140 8 160 180 60 10 200 40 a. How much labor will this profit maximizing monopsonist hire? (Assume that labor can only be hired in blocks of 20 units) b. What wage will the monopsonist pay to its workers?

4. In a small isolated town in the Rocky Mountains the only firm that hires workers is a logging company. The firm's demand for labor and the town's supply of labor are as follows: Wage Quantity Supplied Quantity Demanded $1 20 220 2 40 200 3 60 180 4 80 160 5 100 140 6. 120 120 100 80 7 140 8 160 180 60 10 200 40 a. How much labor will this profit maximizing monopsonist hire? (Assume that labor can only be hired in blocks of 20 units) b. What wage will the monopsonist pay to its workers?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Consider a price-taking firm with total fixed cost of $80 and a market-determined price of $5 per unit for its output. The wage rate is $8 per unit of labor, the only variable input. Using the information provided, complete the table provided below. (7 pts) Marginal Total Revenue Variable Product Units of Labor Marginal Total Output Product Revenue Revenue Marginal Total Marginal Cost Cost Profit Cost 5 15 2 3 30 50 5 6 65 77 7 86 94 8 98 |10 96
47. What will happen to employment if the government sets a minimum wage at $140? (a) Employment will decrease to 15. (b) Employment will increase to 25. (c) It will have no impact on employment (d) None of the above
(Table) According to the table, the firm should hire L Q MPP 0 0 0 5 6 1 2 3 4 5 6 7 8 9 10 six O four five O eight 5 11 18 A 38 50 61 71 80 85 7 9 B 12 11 10 9 5 P $8 $8 $8 SSS $8 $8 $8 $8 $8 SSS $8 $8 VMP 0 40 48 56 72 88 C 88 80 72 40 W $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 $80 workers.
Number of Workers 0 1 2 3 4 5 Output Select one: O a. $400. O b. $200. O c. $100. d. $500. 0 100 280 Marginal Product of Labor 80 60 20 Value of Marginal Product of Labor $1,000 $800 $400 Wage $500 $500 $500 $500 $500 Marginal Profit $500 $100 Refer to the table above. To maximize its profit, the firm will hire workers as long as the value of the marginal product of labour equals or exceeds
8. The law of diminishing marginal product holds that as a variable input increases while other inputs are fixed, ______.a. eventually the fixed inputs will increase at a rate equal to or below the variable increasesb. labor demanded will be high at both very low and very high outputs creating a U-shaped curvec. the marginal revenue product will eventually cause the labor demand curve to turn upwardd. at some point the increase will lose its effectiveness, and additions to output will decline
19. (Use this information to answer qustion 19 - 23) Suppose there is one firm solving the following profit maximization problem. Note that the output price is normalized as 1. max AL¹-a {L} wL where A = 2 and a = 0.6. How much is the aggregate labor demand when the wage is 1? (a) 0.242 (b) 0.435 (c) 0.689 (d) 0.923
e table below shows levels of employment (Labor), the marginal product at each of those levels, and a monopoly's marginal revenue. Labor Marginal Product of Labor Marginal Revenue ($) Marginal Revenue Product ($) 1 24 0.80 2 20 0.75 3 16 0.70 4 12 0.67 5 8 0.65 6 4 0.64 Fill in the final column of the table by calculating the value of the marginal revenue product. If the monopoly operates in a perfectly competitive labor market where the going market wage is $11.20, what is the firm's profit maximizing level of employment in terms of quantity of Labor? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
6. Monopsony basics Consider a newspaper in a small town that has monopsony power in hiring journalists. The following table shows the labor hours that will be supplied at each of the given hourly wages, as well as the total cost of labor at each quantity of labor. Suppose the newspaper's demand for labor as a function MVP of the marginal value product of labor (MVPL) is given by L= 5.5- 20 Compute the marginal expense (MEL) and marginal value product (MVPL) of adding an additional hour at each quantity and enter the values into the following table. Hourly Wage WAGE (Dollars per hour) 90 80 60 10 100 40 20 30 20 40 70 10 50 0 30 The following graph depicts the supply of labor in this market. Labor Supplied (Hours) Use the grey points (star symbol) to plot the marginal expense at the five quantities of labor given in the previous table. Then use the blue points (circle symbol) to plot the firm's demand for labor as a function of the MVPL- 0 1 1 2 2 3 3 4 5 Total Labor Cost (Dollars per…
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13. Identify which way the labor supply curve would shift under the following scenarios. A country experiences a huge influx of immigrants who are skilled in the textile industry. Wages increase in an industry that requires similar job skills. New machines require additional maintenance over time, so that the marginal productivity of labor rises.
(Table) Based on the table, the value for C is Competitive Labor Market Q MPP P VMP W 0 0 8 0 80 1 5 5 8 40 80 11 6 8 48 80 18 7 8 56 80 4 A 9 8 72 80 38 B 8 88 80 50 12 8 C 80 61 11 8 88 80 8 71 10 8 80 80 9. 80 9 8 72 80 10 85 5 8 40 80 88. O 400. 96. 80. 品| 2. 3.
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