Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 14, Problem 2SCQ
Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopoly’s marginal revenue.
- What is the monopoly’s marginal revenue product at each level of employment?
- If the monopoly operates in a
perfectly competitive labor market where the going market wage is
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The table shows levels of employment (Labor), the marginal product of each of those levels, and a monopoly's marginal revenue. What is the monopoly's marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is $20, what is the firm's profit maximizing level of employment?
Consider the graph at right for a monopsonistic labor market.
The competitive wage is $750.00 per hour, and the competitive labor use is 62.50 workers.
In a monopsonistic labor market, the amount of labor used will be 41.7 workers and the wage will
be $ per hour (round your answer to the nearest penny).
(Round all of the following answers to the nearest dollar.)
In a monopsonistic labor market, consumer surplus will be $ ; the monopsonistic labor market
producer surplus will be area $, and the monopsonistic labor market producer deadweight loss
will be $
w, wage per hour
1400.00-
1200.00-
1000.00-
800.00-
600.00-
400.00-
200.00-
Monopsonistic Labor Market
833.33
0.00+
0.0
41.7
40.0
L, Workers per hour
80.0
ME
S
D
Q
The following graph depicts a hypothetical labor market under monopsony.
WAGE RATE (dollars per hour)
37
34
Marginal Factor Cost
31
28
Labor Supply
25
22
19
16
13
0
2
3
Labor Demand
5
QUANTITY OF LABOR (Workers per hour)
Suppose that a minimum wage of $19 per hour is instated in this labor market.
At a wage rate of $19 per hours, the quantity of labor supplied is
?
the quantity of labor demanded.
Chapter 14 Solutions
Principles of Economics 2e
Ch. 14 - Table 14.10 shows levels of employment (Labor),...Ch. 14 - Table 14.11 shows levels of employment (Labor),...Ch. 14 - Table 14.12 shows the quantity demanded and...Ch. 14 - Do unions typically oppose new technology out of a...Ch. 14 - Compared with the share of workers in most other...Ch. 14 - Are firms with a high percentage of union...Ch. 14 - D0 countries with a higher percentage of unionized...Ch. 14 - Table 14.13 shows information from the supply...Ch. 14 - Explain i11each of the following situations how...Ch. 14 - Does the earnings gap between the average wages of...
Ch. 14 - If immigration is reduced, what is the impact on...Ch. 14 - What determines the demand for labor for a firm...Ch. 14 - What determines the demand for labor for a firm...Ch. 14 - What is a perfectly competitive labor market?Ch. 14 - What is a labor union?Ch. 14 - Why do employers have a natural advantage in...Ch. 14 - What are some of the most important laws that...Ch. 14 - How does the presence of a labor union change...Ch. 14 - What is the long-term trend in American union...Ch. 14 - Would you expect the presence of labor unions to...Ch. 14 - What are the main causes for the recent [tends in...Ch. 14 - What is a monopsony?Ch. 14 - What is the marginal cost of labor?Ch. 14 - How does monopsony affect the equilibrium wage and...Ch. 14 - What is a bilateral monopoly?Ch. 14 - How does a bilateral monopoly affect the...Ch. 14 - Describe how the earnings gap between men and...Ch. 14 - Describe how the earnings gap between blacks and...Ch. 14 - Does a gap between the average earnings of men and...Ch. 14 - Will a free market tend to encourage or discourage...Ch. 14 - What policies, when used together with...Ch. 14 - Describe how affirmative action is applied in the...Ch. 14 - What factors can explain the relatively small...Ch. 14 - Have levels of immigration to the United States...Ch. 14 - How would you expect immigration by primarily...Ch. 14 - What is the marginal cost of labor for a firm that...Ch. 14 - Given the decline in union membership over the...Ch. 14 - Are unions and technological improvements...Ch. 14 - Will union membership continue to decline? Why or...Ch. 14 - If it is not profitable to discriminate, why does...Ch. 14 - If a company has discriminated against minorities...Ch. 14 - If the United States allows a greater quantity of...Ch. 14 - If all countries eliminated all barriers to...
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