A competitive labor market is shown in the graph to the right. The demand forlabor is D, and the supply is S.Wage ($/hour)20-SL18The equilibrium wage in this market is $ per hour, andthousand workers16-will be employed. (Enter your responses rounded to two decimal places.)14-The economic rent earned by workers is area12-10----BB + CB6-A + B + C4-2-D12 14 16 18 20A+ B10Number of workers (in thousands)14Enter your answer in each of the answer boxes.

Labor demand curve is a curve illustrating the quantity of labor desired by the business units at…

A competitive labor market is shown in the graph to the right. The demand for labor is D and the supply is S. Wage ($/hour) 20- SL 18- The equilibrium wage in this market is $ per hour, and will be employed. (Enter your responses rounded to two decimal places.) thousand workers 16- 14- The economic rent earned by workers is area 12- A. 10- --- В 8- B+C 6- A+ B+ C 4- C C 2- A D 12 14 16 18 Number of workers (in thousands) 0- A+B 4 16 10 20

A competitive labor market is shown in the graph to the right. The demand for labor is D and the supply is S. Wage ($/hour) 20- SL 18- The equilibrium wage in this market is $ per hour, and will be employed. (Enter your responses rounded to two decimal places.) thousand workers 16- 14- The economic rent earned by workers is area 12- A. 10- --- В 8- B+C 6- A+ B+ C 4- C C 2- A D 12 14 16 18 Number of workers (in thousands) 0- A+B 4 16 10 20

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 2SQP

See similar textbooks

Similar questions

What is die price commonly called in the labor market?
Name some factors that can cause- a shift in the supply curve in labor markets.
Under what Circumstances would a minimum wage be a nonbinding price floor? Under what circumstances would a living wage be a binding price floor?
Other than the demand for labor, what would be another example of a 'derived demand?
Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and the price at which the film can sell output in the perfectly competitive market where it operates. What is the value of the marginal product at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage is 12, what is the films profit maximizing level of employment?
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?
A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours, so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assuming that wages are flexible, and then assuming that wages are sticky downward.
Define economic rent. In the graph below, assume that the market demand curve for labor isinitially D1. a. What are the equilibrium wage rate and employment level?What is the economic rent? What is the opportunity cost?b. Next, assume that the price of a substitute resource increases,other things constant. What happens to demand for labor? Whatare the new equilibrium wage rate and employment level? Whathappens to economic rent? What is the opportunity cost?c. Suppose instead that demand for the final product drops, otherthings constant. Using labor demand curve D1 as your startingpoint, what happens to the demand for labor? What are the newequilibrium wage rate and employment level? Does the amountof economic rent change? Does opportunity cost change?
Provide a briefly explanation for the determination of wage. Support your explanation with and appropriate diagram. The demand curve for gardeners is GD = 19 – W, where G = the number of gardeners, and W = the hourly wage. The supply curve is GS = 14 + 2W a.Graph the demand curve and the supply curve. What is the equilibrium wage and equilibrium number of gardeners hired?b.Suppose the town government imposes a $2 per hour tax on all gardeners. Indicate the effect of the tax on the market for gardeners. What is the effect on the equilibrium wage and the equilibrium number of gardeners hired?
To maximize profits, a firm uses a fixed amount of capital and varying amounts of labour inits production processes to produce commodity Y. The output fetches Kshs 3 in the market andthe firm’s production is as summarized.Number of workers Output per hour0 01 92 173 244 305 356 397 428 44 Required;i.Calculate the marginal product of labour for this firm and the value of the marginal productof labour and the Marginal Revenueii.Suppose that the competitive wage for workers who can make Product Y is Ksh16 perhour. How many workers should this firm hire and why?
no handwriting, please Illustrate and carefully explain the impact of an increase in the income tax ratefrom 25 percent to 35 percent on the demand for labour, supply of labour,equilibrium wage and level of employment.
Please answer the c and d. Suppose that labour demand and labour supply are represented by the equations: Demand: LD = 10 - 0.5W Supply: LS = 0.5W a. Find the equilibrium wage and employment levels. b. Graph the curves and indicate the equilibrium on a graph. c. Suppose hiring is done through a labour union in this market which has limited hiring to 4 workers. What will be the wage in this market? d. Give one factor which causes labour demand to increase and one factor which causes labour supply to increase.