Assume that the market for warehouse labor is perfectly competitive, and that authorities institute the following policy: All warehouse workers must have health insurance, and the employer will pay for 100% of each worker's insurance policy (assume that the cost of the policy is the same for every worker). Evaluate and explain the effects of this policy on (1) warehouse workers, (2) employers, and (3) society as a whole. How might this scenario

Assume that the market for warehouse labor is perfectly competitive, and that authorities institute the following policy: All warehouse workers must have health insurance, and the employer will pay for 100% of each worker's insurance policy (assume that the cost of the policy is the same for every worker). Evaluate and explain the effects of this policy on (1) warehouse workers, (2) employers, and (3) society as a whole. How might this scenario

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 5P

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1.The hiring of labour with fixed factor of production under short run after sometimes leads toincrease in cost only. What’s your opinion at what stage of production producer should makeaddition in labour, identify which concept in economics explains the whole situation, justify youranswer why it happens with the help of table and diagrams
Suppose that Congress passes a law requiringemployers to provide employees some benefit (suchas healthcare) that raises the cost of an employee by$4 per hour.a. What effect does this employer mandate haveon the demand for labor? (In answering this andthe following questions, be quantitative whenyou can.)b. If employees place a value on this benefit exactlyequal to its cost, what effect does this employermandate have on the supply of labor?c. If the wage can freely adjust to balance supply anddemand, how does this law affect the wage andthe level of employment? Are employers better orworse off? Are employees better or worse off?d. Suppose that, before the mandate, the wage in thismarket was $3 above the minimum wage. In thiscase, how does the employer mandate affect thewage, the level of employment, and the level ofunemployment?e. Now suppose that workers do not value themandated benefit at all. How does this alternativeassumption change your answers to parts(b) and (c)?
S n abus tions Dashboard or Education The figures given below show the demand (D)and supply (S) curves of labor in two different markets. Figure 16.3 Wage Rate 18 12 Market A S Q₁ Quantity (Hours) Wage Rate 27 D 18 12 #tv Market B Q₁ D Which of the following is a reason for the wage differential shown in Figure 16.3? Quantity (Hours) O Market A represents the market for a risky occupation. O Working conditions offered by the firms in Market B are uncongenial. O The workers in Market B are unionized whereas the workers in Market A are not. O Market B hires a larger number of skilled workers than Market A. O The workers in Market B are more productive than the workers in Market A. AQ Daydreamer Aa
Other than the demand for labor, what would be another example of a 'derived demand?
The figure depicts the efficiency wage equilibrium of a worker and a firm. According to this figure: Isocosts Worker's best response curve 0.7---- 0.5+ -- 4 6 10 12 Hourly wage, $ At B, the MRS is higher than the MRT. O The firm is able to increase its profits from those attained at A by inducing the worker to exert higher effort in return for a higher wage. O The firm would maximise its profits by paying an hourly wage that is $6 above the worker's reservation wage. O At C, the marginal rate of substitution (MRS) between higher wage cost and higher effort exceeds the marginal rate of transformation (MRT). Effort per hour 近

Homework (CH 18) Sizzler's produces charcoal grills in a small manufacturing facility and sells the grills in a competitive market. The following table presents the company's production function: Labor (Number of workers) 0 OUTPUT (Grills) 400 320 280 240 Use the blue points (circle symbol) to plot the production function for Sizzler's on the following graph. (?) 200 1 160 80 ! 0 Q A N 1 0 2 3 4 5 @ 2 Output (Grills) 0 90 175 245 300 325 LABOR (Number of workers) W S X # 3 E D 4 C 4 $ R F % 5 V Production Function T -O- G 6 B Y & 7 H U 8 ( M 9 K O ) 0 L P
l.C<ldbelly Co. sells pencils in a perfectly competitiveproduct market and hires workers in a perfectly competitivelabor matkct. Assume that the market \\'age rate forworkers is $150 per day.a. What rule should Lead belly follow to hire theprofit-maximizing amount of Labor?b. At the profit-maximizing level of output, the marginalproduct of the last worker hired is 30 boxesof pencils per day. Calculate the p rice of a box ofpencils.c. Uraw a diagram of the labor market for pencil workers(as in Figure 4 of this chapter) next to a diagramof the labor supply and demand for Lcadbelly Co. (asin Figure 3). Label the equilibrium wage and quantityof labor for both the market and the firm. H0\\1 arethese diagrams related?d. Suppose some pencil workers switch to jobs in thegrowing computer industry. On the side-by--sidediagrams fmm part (c), show how this changeaffects the equilibrium wage and quantity of Laborfor both the pencil market and lor Leadbelly. Howdocs this change affect the…
If employers are profit-maximizers, then O competition will always eventually eliminate employment discrimination. O employment discrimination may persist if consumers discriminate. O employment discrimination will persist because it is always profitable. O compensating differentials carinot exist.
Please can i get help with my HW asap? Consider Bowles’ theory about the firm’s employment of labour for pursuing profit maximization. DefineQ = output per hour, e = the amount of output per unit of work done, d = the amount of work done per hour, andw = the hourly wage.Unit labour cost, ulc = w/QThe figure below shows the labour exaction curves of the firm. (a) If the firm has control over w, e and d, what can it do in order to increase its profits?(b) Explain the shape of the “old extraction curve” in the graph. What is the slope of the straight line that links up a point on the labour extraction curve and the origin?(c) Suppose that e and d are determined by technology and the firm’s extraction strategy (e.g., supervision), respectively. What causes the shift of the labour extraction curve from the “old” to the “new”?(d) Suppose there is a technical change such that e decreases but dincreases, and e (percentage change) < d (percentage change), is it profitable for the…
Otherthingsbeingconstant,howwillthefollowinginfluence the hourly earnings of employees? Explain your answer. The employee must work the midnight to 8:00 a.m. shift. The job involves split shifts (work three hours, off two hours, work three additional hours, and so on). Theemployerprovideslow-costchildcareservicesonthe premises. The job is widely viewed as prestigious. The job requires employees to move often from city to city. The job requires substantial amounts of out-of-town travel.
Policymakers sometimes propose laws requiringfirms to give workers certain fringe benefits, such ashealth insurance or paid parental leave. Let’s considerthe effects of such a policy on the labor market.a. Suppose that a law required firms to give eachworker $3 of fringe benefits for every hour that theworker is employed by the firm. How does this lawaffect the marginal profit that a firm earns from eachworker at a given cash wage? How does the lawaffect the demand curve for labor? Draw your answeron a graph with the cash wage on the vertical axis.b. If there is no change in labor supply, how wouldthis law affect employment and wages?c. Why might the labor-supply curve shift inresponse to this law? Would this shift in laborsupply raise or lower the impact of the law onwages and employment?d. As discussed in Chapter 6, minimum-wage lawskeep the wages of some workers, particularlythe unskilled and inexperienced, above theequilibrium level. What effect would a fringebenefit mandate have…
At the bottom of the page, complete the labor demand table for a fifirm that is hiring labor competitively and selling its product in a competitive market.a. How many workers will the firm hire if the market wage rate is $27.95? $19.95? Explain why the firm will not hire a larger or smaller number of units of labor at each of these wage rates.b. Show in schedule form and graphically the labor demand curve of this firm.c. Now again determine the firm’s demand curve for labor, assuming that it is selling in an imperfectly competitive market and that, although it can sell 17 units at $2.20 per unit, it must lower product price by 5 cents in order to sell the marginal product of each successive labor unit. Compare this demand curve with that derived in question 2b (part b of this question). Which curve is more elastic? Explain.