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- darsh is tasked with projecting financial compensation policy strategies for new hires in his relatively successful medium sized distillery. Given that the labor market seems steady and stable, the most likely strategy darsh will utilizie for compensation policy is: market lead market match market lag pay mixAssume the demand for labor for each firm is expressed as L = N (# of employees) x HBAR(average hours per employee per day). Assume a firm has 30 employees that average 6 hours per day for 180 person-hours per day. A minimum wage is passed and reduces demand to 150 person-hours per day. Answer the following questions. a. Draw and demand and supply schedule to represent a binding minimum wage. b. Using the above numbers, how many layoffs are required if average hours per employee are not reduced? Explain c. If no layoffs are made, what would the average hours per employee be set tIf q=2(square root of L) and the price at which the good sells is 10 the demand curve for labor as a function of the wage rate w is given by the formula L=..........
- Four (TYPE I) firms sell Product X in competitive markets at a price of 10. They each operate with the production function: x = 100L – L². Another firm with monopoly power (TYPE II) sells faces demand curve P = 160 – Y and has production function Y = 5L. All five firms hire as wage-takers in the same market where labour supply is w = 2L. Illustrate and quantify the equilibrium wage and the number of workers hired by each firm. а. Solve for the equilibrium wage and employment by each firm. b. Provide a 3-panel diagram. 6.Equality of opportunity (free from any formal discrimination other than according to merit) would ensure that the market will eliminate any residual prejudices through the competitive mechanism. True FalseThe local community contains many residents with PhDs who would like to teach as adjunct professors at the local university, which is the main employer of people with PhDs. The university’s demand curve or marginal value curve for adjunct professors is written: W = 12,000 – 15Q, where W refers to the employer’s willingness to pay for an adjunct professor to teach one course. Because the university faces the entire market supply curve for adjunct professors, the supply curve is upward sloping as hiring each additional adjunct requires offering a higher wage for all who are hired. The assumption that everyone is paid the same salary as required by the marginal worker leads to the university’s marginal expenditures rising faster than the supply curve. The average expenditure curve (or supply curve) for teachers is written as: W = 4,200 + 25Q. But assuming that hiring an additional teacher involves increasing the wage for all of the teachers hired, the marginal expenditures for…
- True or false The single most important element in managerial economics is the microeconomic theory of the firm.A company has 350 employees who work 120 hours a month each. Each worker earns $21 per hour. There is a profitable project the company would like to start, but it would require an additional 21,000 working hours within three months to be completed, and all the employees are fully loaded with other projects. The company does not want to hire new staff; they would like the project to be completed by the current workforce instead.Given that the wage elasticity of labor supply is 0.8, calculate the hourly wage the company should offer its employees to encourage them to work on the new project. Use the midpoint method and round to two decimal places throughout your calculations.A monopsony company has 10 employees each earning $25 an hour. The company decided to hire a new employee at a rate of $30 an hour. The Marginal Labour Cost for employee number 11 is $5 $30 $80 $25 $55
- The elasticity of demand for labor is an important factor in the analysis of the effect of the minimum wage because Elastic labor demand tells us the firm is likely to raise prices inelastic labor demand suggests increasing the minimum wage is less harmful to workers inelastic labor demand suggests increasing the minimum wage is more harmful to workers Inelastic labor supply tells us there will be more unemployment. Inelastic labor demand tells us there will be more unemployment.Boeing created, and recently expanded, an airplane manufacturing center in Charleston, South Carolina. One of the factors that likely influenced this location decision is that South Carolina is a "right to work" state. This represents a) a place factor related to labor. b) a transportation factor related to the market. c) higher wages for Boeing workers in South Carolina relative to Washington. d) a place factor related to the political environment.If q=2 (square root of L); the wage rate is 4 and the price at which the good sells is 8 to maximize profits the firm should use more labor if the current L is less than.......