4) The demand for labor by an industry is given by the curve L = 1200 – 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. What is the equilibrium wage rate and quantity of labor hired? What is the economic rent earned by workers? 5) Using the same information as in Exercise 4 above, suppose now that the only labor available is controlled by a monopolistic labor union that wishes to maximize the rent earned by union members. What will be the quantity of labor employed and the wage rate? How does your answer compare with your answer to Exercise 8? Discuss.
Q: Assume that S, = 1.60 USD/GBP. How will this spot rate djust according to PPP if the United Kingdom…
A: inflation is the pace/increment of inflation in costs throughout a given timeframe. inflation is…
Q: The diagram below shows the domestic demand and supply curves for jeans in Canada. The prevailing…
A: "Deadweight loss represents the loss that is not offset by a gain elsewhere in the economy."
Q: 1. (2 points) Given the following preferences u(x1,x2) = x5 + 0.98x95 .0.5 Solve for the utility…
A:
Q: If the Federal Reserve increases the discount rate from 14 percent to 16 percent banks will borrow…
A: Monetary policy is used by the central government to influence the money supply in the economy to…
Q: Which of the following represents an effort to correct for an adverse selection problem? O a. The…
A: Adverse Selection refers to a market process in which buyers and sellers are able to use their…
Q: An office 3-tray photocopier is for sale at PHP 16,000 in cash or on terms: PHP 2,500 down and PHP…
A: Cash price of the 3-tray photocopier = Php 16,000 Terms for monthly installments: Down payment =Php…
Q: Consider the following game: you and a partner on a school project are asked to evaluate the other,…
A: When analyzing the game theory, the best response strategy is the player's decision based on the…
Q: what is the significance of Consumer Preference to government agents?
A: Understanding consumer preferences can help you predict consumer demand because it determines what…
Q: Chantelle is forecasting the amount of plane tickets. Based on her study, it is likely that airplane…
A: Given; Cost of plane ticket in first year= P2557 Increase in cost of ticket= 8% Annual interest on…
Q: How do politics work in organizations? What are the causes, consequences, and ethics of political…
A: Answer -3 This style of politics focuses on using authority to influence organizational…
Q: Five machines were originally estimated to have useful life of twelve years. If sold now, each can…
A: Cost / benefits of the five machine analysis Machine Sold @P5, 500 = P5500 × 5…
Q: QUESTION 3 Assume that we have a fixed supply of a depletable resource to allocate between two…
A: The consumption function shows the direct relationship between consumption and disposable income. It…
Q: $10,000 $9,800 $9,600 $9,400 $9,200 $9,000 $8,800 $8,600 $8,400 $8,200 $8,000 $7,800 $7,600 $7,400…
A: Intersection of demand and supply of bond determines its price and price of bond and interest rate…
Q: Economists who support a hands - off approach believe that a cause of business cycles is O A.…
A: The fluctuation in the economic activity is tracked by the business cycle. In an economy, the fall…
Q: In the long run, new firms enter a perfectly competitive market when O A) normal profit is greater…
A: In perfectly competitive market, there are many buyers and sellers. Firms produce identical goods so…
Q: What will be the effect of sales of government bonds? Increase aggregate supply Decrease…
A: The central government uses monetary policy to manage economic cycles by influencing the money…
Q: SMC(4) = SAC(4) : %| AVC(4) = AFC(4) =
A:
Q: Question 15 Prime interest rate refers to the lowest rate charged by bank to their most important…
A: The economies around the globe are involved in different types of economic and financial activities.…
Q: 5. Saving and net flows of capital and goods In a closed economy, saving and investment must be…
A: In the circular economy, money is utilized to purchase goods and services. Goods and services go in…
Q: $10,000 $9,800 $9,600 $9,400 $9,200 $9,000 $8,800 $8,600 $8,400 $8,200 $8,000 $7,800 $7,600 $7,400…
A: Intersection of demand and supply of bond determines its price and price of bond and interest rate…
Q: Q6) Sustained growth cannot occur if production relies on a factor whose supply is largely fixed. A)…
A: The answer is as follows:-
Q: Part 2: M/P = C(1+i)/i Question: If people got square root utility from money, and square root…
A: The money supply function is defined as the relationship between interest rate and quantity of…
Q: The nominal exchange rate is the price of one currency in terms of another currency. A nominal…
A: Exchange rate is the rate at which two national currencies are exchanged and it is determined by…
Q: If a country is rich in natural resources, why is it that the people are experiencing a food…
A: There are 3 sector in the economy . 1. Primary sector :- agricultural activities etc 2. Secondary…
Q: 1. Explain the tools of Monetary Policy. With a table and example. 2. if Reserve ratio is 10 %…
A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 questions only…
Q: Consider production function f(L, K) = 10VLK and input prices w = 10,r = 90. a. Solve the long run…
A:
Q: Note: Round your answers to the nearest cent. Big Mac Index: January 2019 Local Price Actual…
A: The Big Mac Index is a price index supported purchasing power parity theory. understand what it's to…
Q: Use the information in the following table to answer the next question. In the table, investment is…
A: Investment is determined by the interest rate. Both are inversely related. Increase in interest rate…
Q: Suppose that Sam has a utility function u(x, y)= x+y where x is the amount of good 1 and y is the…
A: Py = 20 , px = 30 , px' = 10 and M=90
Q: Consider a situation where the central bank increases the money supply. All other things being…
A: Here, given information is, Change (increase) in nominal GDP: $800 billion Velocity of money: 4 To…
Q: According to the text, European countries' growth rates of real GDP per capita Select one: O a.…
A: European countries are the group of countries that are the member of European union. Each country…
Q: H3. The Fed wants to change the reserve requirement ratio in order to increase the money supply…
A: Here, given information is: Current demand deposits: $5,000 Money multiplier: 5 Required change in…
Q: Feasibility analysis for the immaginary vegetarian restaurant
A: A new restaurant's success is determined by factors other than excellent food and marketing. Every…
Q: This is a symptom of a recession: Real salary increases Promotions occur and bonuses increase O…
A: Recession refers to a period of time when GDP declines for two consecutive quarters.
Q: Analyze the Economic Theory of Entrepreneurship.
A: The economic theories have a long and storied history in the field of entrepreneurship. Furthermore,…
Q: What the equation used by the Fed to determine the short-run demand for M2 is?
A: In addition to everything that M1 includes, M2 also includes other types of deposits. M2 includes,…
Q: Suppose the market value of a growing tree at time t is a function f(t, x), where a is expenditure…
A: The price of anything, such as an asset, that is decided by the supply and demand of the object in…
Q: Consider a single country and a single good. The demand curve for this good is given by QD = 144 -…
A: Hi! Thank you for the question, as per the honor code, we are allowed to answer three sub-parts at a…
Q: Calculate the maturity value: Principal (5) 8,000 Term (yrs) 17 Nominal Rate Compound Frequency…
A: Given the present value, PV = 8000 Time = 7 years Compounding periods, n = 7 x 2 = 14 Interest rate…
Q: Human Resource Planning(HRP) provides an input into strategic planning in terms of whether the…
A: Human resource planning (HRP) is a continuous, systematic process of foresight planning. It is to…
Q: 14 Monetary Base and Money supply are described as A) Monetary Hase is currency plus deposits and…
A: Money refers to a commodity that is generally accepted as a medium of exchange for goods and…
Q: Describe the major risks ( Economic Risk & Political Risk) of international diversification.
A: International diversification entails a number of risks. Political and economic risks are the most…
Q: 1. Business cycles are always symmetric and the length of an expansion is the same as the length of…
A: The cycle that depicts the periodic decline and growth of an economy of a nation being measured by…
Q: A nightclub owner has both students and other adults as customers. The demand for drinks by typical…
A:
Q: Suppose you consume xl unit of Goods 1 and x2 units of Goods 2, the utility you get is U(x1, x2) =…
A:
Q: Why do people migrate?
A: Migration is defined as movement of people from one place to another for settling temporary or…
Q: 4. "Economists use price elasticity of demand to measure demand sensitivity as a result of price…
A: Elasticity of demand is defined as type responsiveness of the quantity demand when price of the…
Q: In the long term, what inpact will elite units have in thewat agaijst international terrorism ?
A: 1. The fight against terrorism was a multifaceted campaign with an almost unlimited scope. Major…
Q: The concept __________ captures the interplay between the influence of global corporations and local…
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: 1. An individual's empirical discount factor and "true" discount factor coincide when the individual…
A: Introduction Risk averse- The word "risk-averse" refers to an investor who prioritises capital…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- 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?Imagine there is a firm that only uses labor to produce goods and that its production function is given by Y(L)=5L-L^2. The price of the firm’s output is equal to 1. Let’s assume the firm is a price taker on the product market but is a local monopsony for employment. Imagine that its marginal cost is given by 2+L. Imagine that labor supply is given by 1+L How much labor does the firm want to use? What will be the wage it pays? How many people will work if the government imposes a minimal wage of 2.25? How will this affect the firm’s profit? Calculate and compare before and after the introduction of the minimum wage.Suppose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). The firm has a fixed number of machines and can produce the following quantities (Q) associated with the number of workers (L) in a given time period. L Q 0 0 1 12 2 20 3 26 4 30 5 32 The market price of the good this firm sells is $5. If the firm pays a wage of w = $19.90 per time period, then how many units of labor should this firm hire to maximize profit? Group of answer choices a) 1 b) 3 c) 4 d) 2 e) 5
- Market Failures in Imperfect Competition Efficiency in exchange is satisfied with the equality between MRS and price ratios of the goods. Efficiency in production is satisfied with the equality between MRTS and the price ratios of factor markets (labor and capital; hence, wage and rent). Efficiency in product mix is normally not satisfied under imperfect competition because MRS is not equal to MRT. Answer the following: a. If there is an imperfect competition in both the goods market (X and Y), say that Px/Py is both under monopoly, is it possible for economic efficiency to be reached? How? Explain in words and mathematically. b. If there is an imperfect competition in both the two factor market (L and K), say that w/r or Pl/Pk is both under monopoly, is it possible for economic efficiency to be attained? How? Explain in words and mathematically.True or False, Explain Why 1. A production function is characterized by ? = 10 + 5L, where q is output per hour and L is labor input per hour. If workers earn $10 per hour, the marginal cost of the 5th unit of output is $10. 2. The producers’ surplus in the short-run reflects what the firms gain, while the producers ‘surplus in the log-run reflects what the input owners gain. 3. A monopoly is a price maker, thus its price can never be equal to its marginal revenue. 4. For a monopolistic competitive firm, if a government imposes a lump-sum tax on a firm, the policy will never affect its profit maximizing output and price.1. Suppose that a profit-maximizing firm, operating in a perfectly competitive market, uses the following production function:F(L,K) = L^1/2 + 2(K^1/2) where L are the units of labor and K the units of capital. Suppose further that in order to operate, the firm must pay the government a fixed value patent of $ 50, no matter how much it decides to produce. Finally, consider that the factor price is given by w = 1 and r = 4, respectively.(a) Calculate the TMST, placing L on the x-axis. What value does the TMST take when L = 0, and what value does it take when K = 0? Explain if you can orthere are no corner solutions to the cost minimization problem.(b) Find the conditional demands L (q) and K (q), and the cost function C (q) in the long run.2. A company has a production function equal to f (L, K) = 2L + βK. Suppose that the firm currently achieves a level of production equal to q0, using for this a certain amount of capital and labor.(a) If the firm wanted to decrease the amount of…
- A firm’s profit is given by the following function, which maps output q ≥ 0 onto profit (revenue minus cost). π(q) = 11q − (q 2 + 2q + 10) = −q 2 + 9q − 10, The firm is constrained by a quota such that output q cannot be greater than a value Q. (a) What is the domain of this profit function? 1 of 2 ECON10071/20071 - 2020/21 (b) Given this, what is (global) profit maximising output when (i) Q = 6, and when (ii) Q = 2.Signaling. There are two firms, A and B. There are two time periods, 1 and2. There is one commodity, that can be produced by both firms, at linear cost. So,if firm i has marginal cost i, then the cost of producing q units of the commodity is ciq. The inverse demand for the commodity, at any given moment, is 100 − 4Q,where Q is the aggregate supply at that moment.In period 1, firm A is alone in the market. Firm A’s marginal cost is determinedby Nature, either it is 10 or it is 2, each with probability 1/2. A knows it’s cost.Firm A produces some quantity in period 1 and firm B observes this. Betweenperiods 1 and 2, firm B decides to enter the market or not. After making thisdecision, B is told firm A’s cost. It is too late at this point for B to change itsaction.In period 2, if B is in the market, then A and B compete on quantity.(1) In words, what are the steps to solving this problem?(2) There are two possible quantity-competition games that happen in this game.Solve them both.(3) Now…1)Your firm is the only employer of labor in your market. You face a supply of labor L = (1/20)w – 40, where w is the wage you offer. Your production function is Q = 100L – L2, with dQ/dL = 100 – 2L. You face perfect competition in your product market. The current market price P = 80. Your total fixed costs of production equal 125,000. 1.a) To maximize profits, you will offer a wage equal to: a) 1,260 b) 1,320 c) 1,440 * d) 1,520 e) None of the above are correct. 1.b) If workers form a union, and demand a wage equal to 1,600, your maximum profit will decrease by _____ if you accept their wage demand. * a) 1,600 b) 3,200 c) 4,800 d) 6,400 e) None of the above are correct. 1.c)If workers in your market do not have a union, and you are able to practice 1st degree wage discrimination, paying each worker the minimum amount he/she will accept to work for you, you will hire _____ workers. a) 26 b) 32 c) 36 * d) 40 e) None of the above are correct.
- Suppose that a firm's production is given by: Q= 10L-L² , for L= 0 to 5, where L is labor input per day and Q is output per day. Derive and draw the firm's demand for labor if the firm's output sells for $10 in a competitive market. The marginal product of labor is 10-2L. a. How many hours of labor will the firm use when the wage is $30 per day? b. How many hours of labor will the firm use when the wage is $70 per day?Please give a neat and step-by-step solution. Question: TC = 500 + WL ( where TC is the Total Cost, 500 is the Fixed Cost, W is the wage and L is the Labor). What will be MC (Marginal Cost) if Q (Quantity / Output) from Q* (Quantity at Market Price) to 1.2Q*, given the workers' number increased from 5 to 8, however, wage rate remains the same at W=10. What will be the marginal productivity? If the market becomes a monopoly, what will happen to the market price, market quantity, and social welfare?Suppose a campus restaurant increases the number of workers it hires from 3 workers per day to 11 workers per day. As a result, its total revenue increases from $135 per day to $550 per day. a. Assuming that each worker is equally productive, what is the marginal revenue product per day of each additional worker? $ b. Assuming the restaurant is using its resources in a profit-maximizing way, and that each worker works 5 days each week, what is the current weekly wage rate in the labor market? $ per week