Suppose a monopoly producer is also a monopsonist in the labor market. Demand for the output is p = 500 - 1Q. The production function is Q = 6L, and the labor supply curve is w = 10.00 + 1L. What is the firm's demand for labor? A. MRP = 500 - 5L B. MRP = 1,000 - 6L C. MRP = 250-6L D. MRP = 3,000 - 72L How much labor does the firm hire? What wage will the firm pay? The firm will hire | units of labor at a wage rate of $ ☐ . (Round your answers to two decimal places.)
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- Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage rate required at each level of employment. What is the monopsonists marginal cost of labor at each level of employment? If each unit of labors marginal revenue product is 13, what is the firms profit maximizing level of employment and wage?The demand for a monopoly's output is p = 75-Q. A single firm in this industry has a production function of Q = 2L. Which of the following is the firm's demand for labor? A. D₁ = MRP₁ = 150-8L OB. D₁ = MRP = 80-2L OC. D₁ = MRP₁ = 8-150L D. D₁ = MRPL = 75-2L The firm can hire labor from a competitive labor market at a wage of $15 per hour. How much labor does the firm use? The monopoly will hire workers. (Round your answer to two decimal places.)If the demand for a good is Q = 1,400 - 100p, then marginal revenue function is given by 14-Q/50 1400-200 1400- 100 -1/100 14Q - Q²/100 The more elastic the labour supply is, the smaller the wage paid by a monopsonist. True False
- 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 payAssume 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.A pure monopsony buyer of a resource, in this case, labor L, has a marginal value curve for labor expressed as MV=140-0.4L Its total expenditure function is TE=20L+0.1L2 a) Suppose the firm acts as a monopsonist, What wage will it pay workers and how many hours of labor will the firm hire b) what is the value of deadweight loss given the firm is acting as a monopsonist?
- A monopsonist faces a market labor supply curve w=20+L where w is wage rate and L is the number of workers employed. If the firm's labor demand curve is w=200-4L, what is the optimal wage rate and quantity of labor employed?If an industry is monopolized, then Labour Demand will be below the Labour Demand under competition, unless the firm is also a monopsonist. True FalseYou 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.
- The Happyland Hospital is a monopsonist employer of nurses in the small city of Happyland. The market supply function of nurses is S(W) = 0.25W - 30, where Wis the nurses' weekly wage. a. What is the hospital's marginal expenditure, ME? ⒸME = 120. ⒸME = 8L - 120. ME=8L + 120. O ME = 8L. $ ME = 4L + 120. Instructions: Round quantities to the nearest whole number and all other answers to 2 decimal places as needed. b. If the hospital's marginal benefit is $4,000 per week no matter how many nurses it hires, what is the profit-maximizing number of nurses for the hospital to hire? c. What will the nurses' wage be? $ 16000 d. What is the deadweight loss? nurses. 0 xFor a monopsonist in the labor market, the marginal resource cost of labor is: A) Higher than the wage rate or price of labor B) Less than the wage rate or price of labor C) Equal to the wage rate or price of labor 4 D) Inversely related to the wage rate or price of laborConsider a firm that is a monopolist in its output market and a monopsonist in the market for labour, the only input. The elasticity of demand for a firms good is -2 and the elasticity of supply for labor 4. What percentage does the revenue marginal product of labour exceed the wage paid by this firm by?