2) How many employees will the following firm use? This is a perfectly competitive market with a going price of $3, and the firm can sell as many as they want at that price. The wage that has to be paid to the employees is $30 a day. # of workers Output MPL MRP 1 42 2 82 100 4 115 5 125 6. 131 A* Still referring to question 2... What would happen if the workers unionized and negotiated higher pay, now $50 a day? How would this wage increase change your answer from above? Show what this increase in wage would look like graphically. B*Still referring to question two, does the use of each additional worker show the law of diminishing marginal returns? Explain.

2) How many employees will the following firm use? This is a perfectly competitive market with a going price of $3, and the firm can sell as many as they want at that price. The wage that has to be paid to the employees is $30 a day. # of workers Output MPL MRP 1 42 2 82 100 4 115 5 125 6. 131 A* Still referring to question 2... What would happen if the workers unionized and negotiated higher pay, now $50 a day? How would this wage increase change your answer from above? Show what this increase in wage would look like graphically. B*Still referring to question two, does the use of each additional worker show the law of diminishing marginal returns? Explain.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 7PA

See similar textbooks

Similar questions

Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys 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 films profit maximizing level of employment?
What determines the demand for labor for a firm operation in a perfectly competitive out market?
What determines the demand for labor for a firm with market power in the output market?
Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
Do unions typically oppose new technology out of a fear that it will reduce the number of union jobs? Why or why not?
Explain i11each of the following situations how market forces might give a business an incentive to act in a less discriminatory fashion. A local flower delivery business run by a bigoted white owner notices that many of its local customers are black. An assembly line has traditionally only hired men, but it is having a hard time hiring sufficiently qualified workers. A biased owner of a firm that provides home health care services would like to pay lower wages to Hispanic workers than to other employees.
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 is die price commonly called in the labor market?
Other than the demand for labor, what would be another example of a 'derived demand?
What is a perfectly competitive labor market?