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Only typed answer Two firms H and L have discrimination coefficients dH and dL, where dH > dL. Briefly explain the difference in employment levels and profits between the two firms.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 8SCQ: Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage...

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Refer to the following diagram that shows the labor demand for a monopolistic firm hiring labor from a competitive labor market. Wage W₂ W₁ 2. A 1. B MRP с Q₁ Q₂ The allocatively efficient level of employment for this firm is given by some amount greater than Q 2. some amount between Q 1 and Q 2. S VMP Labor
Suppose that the supply and marginal revenue product of labour curves faced by a monopsonist are as follows: Supply with Min Wage MC Units of Labour (N) Supply MRPN MC with Min Wage 1 5.00 8.00 2 5.20 7.50 5.45 7.00 5.70 6.45 5 6.00 6.05 6. 6.30 6.65 5.50 7 4.90 7.00 4.00 a) Maintain the assumption that firms can not price discriminate in the input market and fill in the firm's Marginal Cost (MC) table. b) How many workers will the monoposonist hire and what would the wage be? How many workers would have been hired and at what wage if this were a perfectly competitive market? c) Suppose now the province introduces a new minimum wage policy which sets the minimum wage at $6. Fill in the monopsonist's supply and marginal cost tables with the minimum wage. d) What will happen to the number of workers hired with the introduction of this minimum wage?
4 A production function is states as: 120Q1/3, with an output price of 25. Firms total revenue is stated as 11000Q1/2 with a labor supply of Q=15w. If you derive the monopsony equilibrium labor and monopsony wage what would they be.
The following table provides information about labor supply and the marginal revenue product of labor for a profit-maximizing monopsonist. Marginal Revenue Wage Labor Supply Product of Labor 4567∞ a 18 36 19 33 20 30 21 27 8 22 24 9 23 21 10 13 223 24 18 11 25 15 12 26 12 27 9 14 28 6 15 29 3 Calculate the marginal cost of labor at each level of employment. What is the marginal cost of hiring the 25th worker?
What is a monopsony? What distinguishes a monopsony from a competitive employer of inputs
Refer to the graph. Comparing monopsony with pure competition in the sale of output and hiring of labor services, the difference in the wage rate will be: A: W1-W2 B: W2-W3 C: W1-W3 D: W0-W1
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[Q: 11-9412503] Consider a monopsonist that hires 5.17 units of labor at a wage of 21.71. If the marginal value placed on the last worker hired is 47.92, what is the elasticity of labor supply for this monopsonist? Elasticity of labor supply: (Enter your answer rounded to two decimal places)
3. A monopsonist's inverse demand for labor can be written as D-'(w) = VMP(E) = 40 – 0.005ED. Labor is supplied to the firm according to the inverse supply function S-(w) s(E) = w = 5+ 0.01E3. %3D
3. A monopsonist's inverse demand for labor can be written as D-1(w) = VMP(E) 0.005ED. Labor is supplied to the firm according to the inverse supply function S-(w) s(E) = w = 5+0.01E,. = 40 – (a) Assume that it is a short-run problem and state the monopsonist's PMAX problem mathematically. (b) Define the monopsonist's cost and find the marginal cost. (c) How much labor does the monopsony firm hire? At what wage rate does it hire workers? (d) How much labor would the monopsonist approximately hire if it hired as if a perfectly competitive firm does? At what wage rate would it hire workers approximately? (e) Draw a graph. (f) Approximately calculate producer surplus (PS), worker surplus (WS), and dead weight loss (DWS) for (Emono: Wimono) and (E*, w*). State the implication of this exercise. (g) How much labor does the monopsony firm hire and at what wage when it must pay when it must pay a minimum wage of $25? State the implication of this exercise.
Consider the following graph facing a monopsonist. If this firm is a profit maximizer, it would pay what wage, w, and hire how many, L, workers? a. w=$16.50;L=47. b. w=$13;L=33. c. w=$22;L=33. d. w=$29;L=47. e. None of the above.?