$28$27$26$25$24$23$22$21$20$19$18$17$16$15$14$13$12$11$10$9$8$7$6$5$4$3$2$1$001234Wage Rate (W)567Labor (L)8→→→Marginal Wage (MW)9101112 13 14-Demand for LaborThe above graph shows the hiring decision by a general store in a rural area. This is the only employer inthe area. The horizontal axis measures the number of workers hired. The vertical axis shows the hourlywage. Question 6Consider the file HW9 Monopsony. Currently the firm ishiringworkers and paying each anhourly wage ofThe government wants to impose a minimum wage in thelabor market. What minimum wage will result in the largestnumber of workers hired by this employer? How manyworkers will this employer hire under this minimum wagelaw?Minimum wage =dollars.Number of workers hired:dollars per hour.workers

The minimum wage is the certain limit below which a wage rate can not fall. The firms have to pay…

The government wants to impose a minimum wage in the labor market. What minimum wage will result in the largest number of workers hired by this employer? How many workers will this employer hire under this minimum wage

The government wants to impose a minimum wage in the labor market. What minimum wage will result in the largest number of workers hired by this employer? How many workers will this employer hire under this minimum wage

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

$28
$27
$26
$25
$24
$23
$22
$21
$20
$19
$18
$17
$16
$15
$14
$13
$12
$11
$10
$9
$8
$7
$6
$5
$4
$3
$2
$1
$0
0
1
2
3
4
Wage Rate (W)
5
6
7
Labor (L)
8
→→→Marginal Wage (MW)
9
10
11
12 13 14
-Demand for Labor
The above graph shows the hiring decision by a general store in a rural area. This is the only employer in
the area. The horizontal axis measures the number of workers hired. The vertical axis shows the hourly
wage.

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Walmart employs the majority of people in small rural town. It's demand for labor is given by QD=100-2P. The supply of labor is given by Qs=3P. ✓ people would be If the labor market functioned as a competitive market, the wage rate (the price of labor) would be employed, and the producer surplus would be Because Walmart faces little competition for workers, it decides to offer the wage that maximizes consumer surplus (the monopsonist price). This wage is ✓being employed. The producer surplus is now ✓. Note: don't worry if the number of ✓, which results in workers is not an integer.
Illustrate and explain the impact of a minimum wage on the labour market.