A monopsonist's demand curve for labor is given by w= 15 – 2L, where w is the hourly wage rate and L is the number of person-hours hired. a. If the monopsonist's supply (AFC) curve is given by w= 1L, which gives rise to a marginal factor cost curve of MFC = 2L, how many units of labor will he employ and what wage will he pay? Instructions: Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest penny (2 decimal places). Labor: Wage: $ b. How would your answers to part (a) be different if the monopsonist were confronted with a minimum wage bill requiring him to pay at least $7/hr? Instructions: Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest whole number. Labor: Wage: $
A monopsonist's demand curve for labor is given by w= 15 – 2L, where w is the hourly wage rate and L is the number of person-hours hired. a. If the monopsonist's supply (AFC) curve is given by w= 1L, which gives rise to a marginal factor cost curve of MFC = 2L, how many units of labor will he employ and what wage will he pay? Instructions: Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest penny (2 decimal places). Labor: Wage: $ b. How would your answers to part (a) be different if the monopsonist were confronted with a minimum wage bill requiring him to pay at least $7/hr? Instructions: Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest whole number. Labor: Wage: $
Chapter16: Labor Markets
Section: Chapter Questions
Problem 16.5P
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Transcribed Image Text:c. How would your answers to parts (a) and (b) be different if the employer in question were not a monopsonist but a perfect
competitor in the market for labor?
Instructions: Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest penny (2 decimal places).
Without a minimum wage
Labor:
Wage: $
With a minimum wage
Instructions: Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest whole number.
Labor:
Wage: $
Transcribed Image Text:A monopsonist's demand curve for labor is given by w= 15 – 2L, where w is the hourly wage rate and L is the number of person-hours
hired.
a. If the monopsonist's supply (AFC) curve is given by w= 1L, which gives rise to a marginal factor cost curve of MFC = 2L, how many
units of labor will he employ and what wage will he pay?
Instructions: Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest penny (2 decimal places).
Labor:
Wage: $
b. How would your answers to part (a) be different if the monopsonist were confronted with a minimum wage bill requiring him to pay
at least $7/hr?
Instructions: Round your answer for labor to 1 decimal place. Round your answer for wage to the nearest whole number.
Labor:
Wage: $
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