A production function is states as: 120Q1/3, with an output price of 25. Firms total revenue is stated as 11000Q1/2 with a labor supply of Q=15w. If you derive the monopsony equilibrium labor and monopsony wage what would they be.
Q: The inverse labour demand curve of a monopsonist employer is W= 37,500 – 80L, where W is the annual…
A: Monopsonist employ the labor where ME = labor demand
Q: 2. If a worker's wage decreases, the substitution effect says their choice of leisure will while the…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: B. Consider a firm who sells output at p=10 and has a short run production function Q(L)=20L-L². Its…
A:
Q: If the price is set to P1, what area represents the producer surplus in the graph shown above? D B +…
A: Producer surplus refers to the total amount of money earned by a producer that is above the minimum…
Q: Demand and Supply of Labor by Firm A Output MPL Scenario 2 No. of Workers W ME 0 0 1 20 20 250 250 2…
A: We have given cost and revenue scenario of a firm which is selling and its output and using the…
Q: 4. In a small isolated town in the Rocky Mountains the only firm that hires workers is a logging…
A: In a competitive market, the labour demand curve and the labour supply curve determines the wages…
Q: Given the information in the table below, graph the marginal cost of labor for a monopsony firm.…
A: A monopsony refers to when the market comprises a single buyer. For the given market, the monopsony…
Q: Consider a newspaper in a small town that has monopsony power in hiring journalists. The following…
A: The cost of production that represents the change in the total cost of production cost which tends…
Q: 4. If a monopsonist employer can perfectly wage-discriminate in hiring its workforce there is no…
A: A monopsony is a market structure in which a single buyer controls a significant portion of the…
Q: Suppose that a firm's production is given by: Q= 10L-L² , for L= 0 to 5, where L is labor input per…
A: In a perfectly (PC) competitive labor market, the workers are hired according to their productivity.…
Q: 1) The employment of teaching assistants (TAs) by major universities can be characterized as a…
A: A monopsony basically refers to a market where there is only one buyer. The market is called an…
Q: Your answer to the previous question can be explained by the differences in the Marginal Cost and…
A: When talking about market for labor, there can be two types of market such as perfectly competitive…
Q: For a monopsony firm, draw two well-labelled graphs of marginal expense (as well as supply and…
A: In the above diagram, represents the effect of minimum wage on monopsony market. Intersection of…
Q: There is only one buyer in a labour market. a) Prove that if labour supply inverse curve is W=a+bL,…
A: Monopsonist refers to the market scenario in which there is a single buyer of a resource . In the…
Q: 3. A monopsonist's inverse demand for labor can be written as D-(w) = VMP(E) = 40 – 0.005ED. Labor…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: 2. The table shows levels of employment (Labor), the marginal product at each of those levels, and a…
A: Marginal Revenue Product(MRP) is the change(Δ) in total revenue(TR) from hiring one more labor(L).…
Q: A. Determine the following using diagram to answer the following questions. This assignment is about…
A: Note:- Since we can only answer up to three subparts, we'll answer the first one. Please repost the…
Q: Suppose a specific labour market is considered to be a monopsony. Who holds the market power and can…
A: Monopsony means one buyer. Mono means one and sony means buyer. So the individual demand curve is…
Q: has O buyer; monopoly; upward-sloping supply O seller; monopoly; upward-sloping demand buyer:…
A: Monopoly is a single seller in the market and monopsony is a single buyer in the market.
Q: Firm MFC $20 18 SupplyLabor 16 14 12 10- MRP = Demand 8. 0 1 2 3 Workers 4 per day The graph above…
A: A monopnist is a sole employer of labor in a market. It hires the labor where MRP=MFC.
Q: 1) A firm has production function of f(x) = x² + 120x, it is also a monopsonist in 1. Suppose there…
A: Production function F(X)=-0.5X2+120X Price of output=1 Cost function TC=0.5X2+30
Q: Draw a graph to represent the optimal hiring decision of the Halifax Regional School Board (a…
A: A monopsony is a market condition in which there is just a single purchaser, the monopsonist. Like a…
Q: a. What happens to wages and employment if the government imposes a payroll tax on a monopsonist?…
A: Hey, thank you for the question, since there is multiple question posted, according to our policy we…
Q: With a linear inverse supply function of an input of general form o = a+ bx, the marginal cost…
A: Since you have asked multiple question, I will solve first question.
Q: monopsony
A: In a monopsony market, the monopsonist firm—like any profit‐maximizing firm—determines the…
Q: The figure below shows the supply of labor, marginal factor costs, and the demand for labor for a…
A: The monopsonistic firm would hire laborers where VMPL = MFC i.e 30,000 labors who work for 2000…
Q: Can a monopsony exercise monopsony power if the supply curve it faces is horizontal? Why or why not?…
A: If the supply curve is horizontal price could not be changed because at that price everything would…
Q: pure monopsony buyer of a resource, in this case, labor L, has a marginal value curve for labor…
A: Monopsony is a single buyer which maximizes profit by hiring workers where marginal expenditure…
Q: Question 4 Suppose that the supply and demand for labor for a monopsonist are given below: Wage…
A: MRP or Marginal Revenue Product is the amount of revenue generated from an additional one unit of a…
Q: Witha linear inverse supply function of an input of general form w = a+ bx, the marginal cost…
A: Since you have asked multiple question we will solve first question for you.
Q: Polly’s Pet Store has a local monopoly on the grooming of dogs. The daily inverse demand curve for…
A: A market is a place where the buyers and the sellers interact with each other and the exchange of…
Q: Suppose that a monopoly firm finds that its MR is $58 for the first unit sold each day, $57 for the…
A:
Q: (C) Suppose the firm only produces good X and that the price of good Y, a substitute good,…
A: Since you have asked multiple questions, we will answer only the first one for you. If you want the…
Q: 1. Assume that two goods A and B are gross substitutes. If the price of A falls, this means that you…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Imagine there is a firm that only uses labor to produce goods and that its production function is…
A: Firm would use profit maximizing amount of labor, such amount of labor is where marginal revenue…
Q: 5. Suppose a fim's production function is y = 40K0.25 The price for K is r. %3D a) Derive the factor…
A: The production function is that function, which shows the relationship between factors of production…
Q: 8. If the demand for labor is given by WD = 110 - 3L and the supply of labor is given by Ws = 10 +…
A:
Q: conomics 8. Consider a firm whose production function is q(L) = 60L -0.5L² when hiring L hours of…
A: Note:- Since we can only answer up to three subpart, we'll answer first answer the first three.…
Q: Consider a firm in a perfectly competitive industry that must decide how much labor to hire (in the…
A: A labor market is a place where the buyer and seller of the labor will interact and set the…
Q: Joe's Flat Pretzels is a dominant employer of manufacturing labor in the town of Pretzelville, PA.…
A:
Q: On a clearly labeled graph, show what happens to wages paid and employment if the government imposes…
A:
Q: PLABOR МIC $7.00 -S $5.25 $4.50 MVP QLABOR 1000 1500
A: The monopsony is a market structure which is characterized by the presence of a single buyer in the…
Q: The demand for a monopoly's output is p=80-Q. The firm's production function is Q=2L Which of the…
A: The labor demand curve of a firm shows the negative relationship between wage rate and the quantity…
Q: Assume a firm is a monopsonist that can hire its first worker for $6 but must increase the wage rate…
A: *ANSWER :- * a)
Q: 3) Consider a firm that produces output y in a a perfectly competitive market and can charge the…
A: Since you have posted a question with multiple parts , I have solved the first three for you.
Q: Consider a firm that sells output at P = 5 and has a short-run production function: Q(L) = 20L −…
A: Given, The monopolist's production function, QL=20L-L2 Market price = $5. a) The total revenue for…
Q: (a) Explain why we might expect labor demand for a monopolist in the product market to be less…
A: A monopoly is a market structure where there is only one seller and many buyers. The seller has…
4
A production function is states as: 120Q1/3, with an output price of 25. Firms total revenue is stated as 11000Q1/2 with a labor supply of Q=15w. If you derive the monopsony equilibrium labor and monopsony wage what would they be.
Step by step
Solved in 2 steps
- What determines the demand for labor for a firm operation in a perfectly competitive out market?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?Consider the following table illustrating the hourly production of zidgets. Furthermore, suppose the wage rate is $15/hour; however, there are two firms, Firm A and Firm B, where Firm A has fixed cost of $10/hour and Firm B has fixed cost of $20/hour. L (workers) Q (units) 1 50 90 3 120 Firm B's total cost of producing Firm A's total cost of producing 90 zidgets is 90 zidgets. O greater than less than equal to not enough information
- Suppose that the supply and marginal revenue product of labour curves faced by a monopsonist are as follows: Supply with Min Wage Units of Labour Supply MRPN MC MC with Min Wage (N) 1 5.00 8.00 5.20 7.50 3 5.45 7.00 4 5.70 6.45 6.00 6.05 6. 6.30 5.50 7 6.65 4.90 7.00 4.00 a) Maintain the assumption that firms can not price discriminate in the input market and fill in the firm's Marginal Cost (MC) table. b) How many workers will the monoposonist hire and what would the wage be? How many workers would have been hired and at what wage if this were a perfectly competitive market? c) Suppose now the province introduces a new minimum wage policy which sets the minimum wage at $6. Fill in the monopsonist's supply and marginal cost tables with the minimum wage. d) What will happen to the number of workers hired with the introduction of this minimum wage?Suppose that the supply and marginal revenue product of labour curves faced by a monopsonist are as follows: Supply with Min Wage MC Units of Labour (N) Supply MRPN MC with Min Wage 1 5.00 8.00 2 5.20 7.50 5.45 7.00 5.70 6.45 5 6.00 6.05 6. 6.30 6.65 5.50 7 4.90 7.00 4.00 a) Maintain the assumption that firms can not price discriminate in the input market and fill in the firm's Marginal Cost (MC) table. b) How many workers will the monoposonist hire and what would the wage be? How many workers would have been hired and at what wage if this were a perfectly competitive market? c) Suppose now the province introduces a new minimum wage policy which sets the minimum wage at $6. Fill in the monopsonist's supply and marginal cost tables with the minimum wage. d) What will happen to the number of workers hired with the introduction of this minimum wage?Given the labor demand function (9)-/+cq where I(9) is labor demanded, is the fixed cost of production and cis the constant marginal cost. Assume weg wf, • Derive p by maximizing profit. . If you are given that we are following Dixit Stiglitz's demand system how would you comment upon the economy of scope and the vanety produced?
- The following diagram provides the demand for labour (DL) of a remote gold mine, and the local community's supply of labour (SL). The mining company has a monopsony in the local labour market. W ($ per week) 2000 1500 1000 500 0 L (miners) 5 10 15 20 25 30 1. Use the information in the diagram to provide an equation for the demand for labour function and the supply of labour function. Show your work in the space provided. 0 SL 2. From the information in the diagram, estimate the mine's expenditure on labour (E) function its marginal expenditure on labour (ME) function. Show your work in the space provided. 3. The profit maximizing monopsonist will Q = miners and pay them a wage w = $_ week. Show your work in the space provided and in the above diagram. 4. The Dead-weight-loss from monopsony is DWL = $_ this paper and on the above diagram. Show your work on the back of perWhat is a monopsony? What distinguishes a monopsony from a competitive employer of inputsGiven the following production function. If the price of the output is $100. What is the Marginal Revenue Product of the 4th worker (4th unit of labor)? Units of Labor Total Output MP ㅇ ㅇ 1 5 2 15 3 30 4 42 5 52 60 7 65 8. 67 9 63 10 55
- 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.Suppose a firm produces the following products. Calculate and fill in the missing values in the table below. (Round your answers to the nearest whole number.) Marginal product of Value of marginal Product Number of workers Price per unit labor product of labor A 10 170 $1,200 20 130 $12 25 130 $14 30 90 $1,200 In the above case, when the daily wage of the workers is $1400, then the firm will produce the products only after reducing the number of workers employed. The firm observes with the help of the that as additional labor is employed, the quantity produced for product A increases.Consider a fishery with the following production function where L is the number of fishermen and TP (total product) is the total number of fish caught among all fishermen. L 1, 2, 3 , 4, 5, 6 , 7, 8, 9, 10 TP 18, 34, 48, 60, 70, 78, 84, 88, 90, 90 The price of fish is $2 and the wage of a fisherman is $24. A. If the fishery is private property, how many fishermen will the owner hire? B. If the fishery is common property, how many people will come to fish? (Assume people fish as a job and not for recreation) c. What is the efficient number of fishermen?
