tion 28In a perfectly competitive labor market, a profit-maximizing firm that is also perfectly competitive in the product market will:pay a wage that is equal to the marginal product of labor.hire more units of labor than would a firm that sells its output in a monopoly market.pay a wage equal to the marginal factor cost.pay a wage that is equal to the price of the product.face a perfectly inelastic supply curve of labor.

In a perfectly competitive labor market, there are many employers and employees with perfect…

Answered: tion 28 In a perfectly competitive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Consider the labour market for farms during the harvest season. Assume the market is perfectly competitive, with a labour demand function QD = 10-P and a labour supply function QS = 3P, where P is the wage. a) What are the consumer (farm owners) surplus and producer (farm workers) surplus in equilibrium? b) What is the price elasticity of demand at the equilibrium? c) Suppose the government subsides the farm owners (consumers) $1 for every unit of labour purchased. Then, compute the quantity of labour traded in the market, the wage received by the workers and the wage paid by the farm owners. d) Calculate the consumer surplus and producer surplus in the presence of the subsidy in part c).
Suppose that a fhrm is producing in the short run with output given by Q-65L L2 The firm hires labor at a wage of $45 per hour and sells the good in a competitive market at P- $46 per unit. Find the firm's optimal use of labor. Enter as a value. ROUND TO THE NEAREST WHOLE NUMBER. Type your answer
Macmillan Learning You determine that an additional worker generates an extra $250 a day in revenue for your business. The $250 a day represents the cost demand supply marginal revenue product of the worker.
Which of the following is characteristic of a labor market that is a monopsony? Multiple Choice О The supply curve for labor lies above the marginal resource cost curve of the firm. О The type of labor available is relatively mobile from one industry to another. The firm's employment is a small portion of the total employment of that type of labor. The wage rate the firm must pay varies directly with the number of workers it employs.
A firm faces a perfectly elastic demand for its output at a price of $6 per unit of output. The firm, however, faces an upward-sloped labor supply curve ofE = 20w - 120where E is the number of workers hired each hour and w is the hourly wage rate. Thus, the firm faces an upward-sloped marginal cost of labor curve ofMCE = 6 + 0.1EEach hour of labor produces five units of output. How many workers should the firm hire each hour to maximize profits? What wage will the firm pay? What are the firm’s hourly profits?
For each of the following determine the impact on the demand or the supply of labor and effect on the equilibrium wage and quantity of labor employed. The marginal productivity of workers rises. The government has just adopted an open-door immigration policy People desire leisure more than ever before
If the price of a good increases, then in the market for the type of labor needed to produce this good, Group of answer choices employment will decrease. the labor supply will increase. the marginal product (MP) of labor will increase. the marginal revenue product (MRP) of labor will increas
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Suppose a competitive firm is paying a wage of $12 an hour and sells its product at $3 per unit. Assume that labor is the only input. If the last worker hired increases output by three units per hour, then to maximize profits the firm should not change the number of workers it currently hires. lay off some of its workers. hire additional workers. There is not enough information to answer the question.
If the marginal product of labor is 50 per day, and if the market is $4.50, calculate the marginal revenue product.
Complete the following labor supply table for a firm hiring labor competitively: Marginal Resource Wage Rate Marginal Revenue Product Units of Labor Total Labor Cost (Labor) Cost $14 - - 1 14 $38 14 28 3 14 24 4 14 20 14 14 14 10 2.

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