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.

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.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter12: The Supply Of And Demand For Productive Resources

Section: Chapter Questions

Problem 12CQ

See similar textbooks

Similar questions

Other than the demand for labor, what would be another example of a 'derived demand?
What is the marginal cost of labor for a firm that operates in a competitive labor market? How does this compare with the MCL for a monopsony?
What determines the demand for labor for a firm with market power in the output market?
$ MC of Labor P1 Labor Supply P2 P3 P4 VMPL/ Nabor Demand Quantity Labor The information above is from the labor supply and production function for a firm that operates as a monopsony employer. What wage would this firm charge to maximize profit? O P2 P4 О РЗ O P1
In a monopsony labor market, a profit-maximizing firm hires workers until. O the value of the marginal revenue product equals the wage. O the value of the marginal revenue product equals marginal cost. O the value of the marginal revenue product equals zero O the value of the marginal revenue product equals the marginal factor cost.
Unit of Labor 0 1 2 3 4 5 5 4 6 3 2 Total Product 0 15 28 39 48 55 60 Refer to the table, which gives data for a firm that is hiring labor in a purely competitive market. If the wage rate is $20, how many workers will the firm choose to employ? Product Price $ 2.20 2.00 1.80 1.60 1.40 1.20 1.10 5 5 dy en
What is the marginal cost of labor for a firm that operates in a competitive labor market? How does this compare with the MCL for a monopsony? Who will pay higher wages: a monopsony or a competitive labor market? Who will employ more labor: a monopsony or a competitive labor market?
23. Question 23 is based on the below-mentioned diagram illustrates a monopsony outcome. The monopsony firm MRP = marginal revenue product, MFC = marginal factor cost and the wage is determined by the labour supply curve at this level of output. In the absence of a union the monopsony firm hires Lm workers and pays them Wm. MFC wage Wu Wm Lm S O a. hire less than Lm workers. Ob. hire a maximum of Lm workers. Ochire greater than Lm workers. Od. None of the above. MRP Quantity of labor Suppose the union and firm negotiates a wage above Wu, the firm will A
he.3
Q65
The following table shows the production function for a company. This company sells its product in a perfectly competitive product market at a price of $4 each and hire labor in a perfectly competitive labor market at a wage of $450 per week. Calculate the Marginal MarginalProduct of the 1st, 2nd, and 3rd. Calculate the Value ofMarginal Product of the 1st, 2nd, and 3rd How many workers should it hire? How do you know? Explain your answer. Show formulas and some of your calculations.
3. For a profit-maximizing monopsonist (only person hiring), they will hire labor until the MCE=MRPE. Consult the following table which I have started to fill out. What is the optimal number of workers for this firm to hire if their product sells for $15. + Workers 0 12345 1 a. b. 2 C. 3 d. 4 Wage 0 3 9 21 30 39 MCE 3 15 111 Product/hour Revenue MPE N/A 5 0 SIIHE 5 9 12 14 15 $0 $75 $135 LER 4 T 110 F FOCUS MRPE N/A 75 60 40