Question 14 For a monopsonist, the marginal factor cost is always: equal to the wage rate. less than the wage rate. greater than the wage rate the same as the labor supply. the same as the labor demand. Question 17 A monopsonist will hire more workers than will be hired in a competitive labor market. True False Question 19 Which of the following statements is true about monopsony? c and e. c, d, and e. Monopsonists exercise complete buying power. Monopsonists maximize profit by setting MRP = MFC. Monopsonists face the whole labor supply curve

Question 14 For a monopsonist, the marginal factor cost is always: equal to the wage rate. less than the wage rate. greater than the wage rate the same as the labor supply. the same as the labor demand. Question 17 A monopsonist will hire more workers than will be hired in a competitive labor market. True False Question 19 Which of the following statements is true about monopsony? c and e. c, d, and e. Monopsonists exercise complete buying power. Monopsonists maximize profit by setting MRP = MFC. Monopsonists face the whole labor supply curve

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6
The demand for labor for a firm operating in a perfectly competitive output market equals ____. The demand for labor for a firm with market power in the output market equals ______. Would you expect the presence of labor unions to lead to higher or lower pay for worker-members? Would you expect a higher or lower quantity of workers hired by those employers? Explain briefly.
Assume a monopsony uses only one factor, i.e. labor, L, to produce a final good, Q, which is sold in a competitive market at the price p = 1 to maximise profits. The production function of the monopsonist is given by Q (L) = 100L - 1L². The inverse supply curve for labor is w(L) = 2 20 + 2 L. a. Derive and describe the monopsony's inverse demand curve for labor. b. Describe algebraically and graphically how many units of labor the monopsony hires and at what wage. Describe the nature of monopsony power and provide economic intuition.
Compared to a firm hiring in a perfectly competitive market, firms operating as a monopsonistic market will Multiple Choice hire less workers at a higher wage. hire less workers at a lower wage. hire more workers at a higher wage. hire more workers at a lower wage.
11) What is a monopsony? Show the graph of a monopsony with the going wage and number of workers employed.
3 ped Wage Rate W We W 0 Qe Quantity of Labor Multiple Choice Refer to the graph. A monopsonist will set the wage at MRC Wu a rate that cannot be determined from the graph. Wm D₁ = MRP We
1. How is the wage rate and level of employment determined if the labor market was controlled by a monopsonist. Discuss and explain in detail with the help of diagrams.
You are given the following information about a monopsonist: The demand is P= 25-0.25Q, the average expenditure curve is AE = 0.5Q, and the marginal expenditure curve is ME = 1Q. The quantity (Q) is in thousands of units. Given the information above, how much will the monopsonist purchase, and how much will it pay? (Round your responses to two decimal places.) The monopsonist will purchase thousand units at a price of $ per unit.
A monopsonist’s products are sold in a perfect competitive market at a price of $6. If the firm’s TFC=5L+2L2 and in the short run, its marginal product equals 10. How many units of labor will she employ and what wage will she pay? Assume now the monopsonist firm’s product is in a monopoly market with demand function P=80-2Q. How many units of labor will she employ and what wage will she pay
We discussed the impacts of both a monopsony as well a monopoly on the labour market. Combine the results of these two situations to discuss the ramifications on wages and employment if a firm was both a monopoly and monopsony.
The following table shows the relationship between workers and output for a factory in the short run, with capital held constant. This firm is a monopoly in the output market, and price and marginal revenue for the firm are also given in the table. Find the marginal revenue product of labor (MRPL). Marginal Physical Product (MPPL) Labor Input 0 1 2 3 4 5 If the wage rate is $408, this firm will hire 0 20 14 12 9 3 workers. In general, a monopolist will employ Price of Output (P) 40 39 38 37 36 35 Marginal Revenue (MR) 38 36 34 32 30 workers than a similar competitive firm. MRPL 760 504 408 288 90
! Please answer questions 6 and 7.