You are asked to analyze a market with a single employer (a monopsonist) and many workers willing to supply The labor supply and demand are given by the equations below: Ls = −45 + 3w Ld = 270 − 6w a. Find the deadweight loss in this market with a monopsonist

You are asked to analyze a market with a single employer (a monopsonist) and many workers willing to supply The labor supply and demand are given by the equations below: Ls = −45 + 3w Ld = 270 − 6w a. Find the deadweight loss in this market with a monopsonist

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter27: Wages, Unions, And Labor

Section: Chapter Questions

Problem 6QP

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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?
Firm Alpha is a monopsonist in the labor market. The firm’s marginal value of labor is MVL = 105 - 3L. The labor supply is LS = 0.5w. The monopsonist uses its market power to maximize its own profit. The monopsonist hires L= workers and pays a wage w=. The deadweight loss in this market is DWL=.
The inverse labour demand curve of a monopsonist employer is W= 37,500 – 80L, where Wis the annual salary and Lis the number of workers hired. The labor supply is given by W= 9,400 + 108L. (a) The marginal expenditure equation is ME= Do not include a comma in your answer. Please use capital letters (e.g. L not I) (b) To the nearest integer, the monopsonist would hire 数字 workers and, given that number of workers, the salary they would pay is, rounded to 2 decimal places (e.g. 4.12) A7 Do not include a comma in your answer.
The inverse labour demand curve of a monopsonist employer is W = 38,500 – 112L, where W is the annual salary and L is the number of workers hired. The labor supply is given by W = 10,700 + 100L. (a) The marginal expenditure equation is ME= . Do not include a comma in your answer. Please use capital letters (e.g. L not l) (b) To the nearest integer, the monopsonist would hire workers and, given that number of workers, the salary they would pay is, rounded to 2 decimal places (e.g. 4.12) . Do not include a comma in your answer.
Solve it correctly please. I
The inverse labour demand curve of a monopsonist employer is W = 41,500 – 101L, where W is the annual salary and L is the number of workers hired. The labor supply is given by W = 9,800 + 109L. (a) The marginal expenditure equation is ME=__________ (b) To the nearest integer, the monopsonist would hire ______ workers and, given that number of workers, the salary they would pay is, rounded to 2 decimal places (e.g. 4.12) ____
3. A monopsonist's inverse demand for labor can be written as D-1(w) = VMP(E) 0.005ED. Labor is supplied to the firm according to the inverse supply function S-(w) s(E) = w = 5+0.01E,. = 40 – (a) Assume that it is a short-run problem and state the monopsonist's PMAX problem mathematically. (b) Define the monopsonist's cost and find the marginal cost. (c) How much labor does the monopsony firm hire? At what wage rate does it hire workers? (d) How much labor would the monopsonist approximately hire if it hired as if a perfectly competitive firm does? At what wage rate would it hire workers approximately? (e) Draw a graph. (f) Approximately calculate producer surplus (PS), worker surplus (WS), and dead weight loss (DWS) for (Emono: Wimono) and (E*, w*). State the implication of this exercise. (g) How much labor does the monopsony firm hire and at what wage when it must pay when it must pay a minimum wage of $25? State the implication of this exercise.
The monopsonist will hire 50 units of labor at a wage rate of w = L = 50. In comparison to a perfectly competitive employer who hires 50 units of labor at a wage rate of 100, the monopsonist hires half the quantity of labor at half the wage rate. Hence, the statement is true.
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 — L². The inverse supply curve for labor is w(L) = 2 20 + 2 L. c. Describe algebraically and graphically what the welfare effects would be of the introduction of a minimum wage set at the competitive level. Would it improve welfare if the minimum wage were set above the competitive wage? Support your answer with a graph and economic intuition.
The more elastic the labour supply is, the smaller the wage paid by a monopsonist. True False
Answer please. ...
A monopsonist's demand for labor can be written as VMPE = 40 – 0.005ED. Labor is supplied to the firm according to w = 5 + 0.01ES. Thus, the firm's marginal cost of hiring workers when it hires off of this supply schedule is MCE = 5 + 0.02ES. A. How much labor does the monopsony firm hire and at what wage when there is no minimum wage? B. How much labor does the monopsony firm hire and at what wage when it must pay a minimum wage of $25?