A professional basketball players' union negotiates a contract that dramatically increases all players' salaries. How would this influencethe opportunity cost for a player who was considering giving up basketball to pursue a career in broadcasting?Select one:Oa.it would increase the opportunity cost of continuing to play professional basketballO b. it should have no bearing on the player's decision from an economic standpointit would not affect the opportunity cost of playing basketball or of broadcastingO d. it would increase the opportunity cost of becoming a broadcaster

The opportunity cost is the benefit of the next best alternative that is given up.

Answered: A professional basketball players'…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 1SCQ: Table 14.10 shows levels of employment (Labor), the marginal product at each of those levels, and...

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College students sometimes work as summer interns forprivate firms or the government. Many of these positions pay little or nothing. a. What is the opportunity cost of taking such a job? b. Explain why students are willing to take these jobs. c. If you were to compare the earning later inlife of workers who had worked as interns and those who had taken summer jobs that paid more, what would you expect to find?
Paying soldiers more who are in combat zones is an example of? O wage discrimination O compensating differentials O human capital effect O segmented market effect.
A current debate in education is whether teachersshould be paid on a standard pay scale based solelyupon their years of training and teaching experience,or whether part of their salary should be based upontheir performance (called “merit pay”).a. Why might merit pay be desirable?b. Who might be opposed to a system of merit pay?c. What is a potential challenge of merit pay?d. A related issue: Why might a school district decideto pay teachers significantly more than the salariesoffered by surrounding districts?
Policymakers sometimes propose laws requiring firms to give workerscertain fringe benefits, such as health insurance or paid parental leave.Let's consider the effects of such a policy on the labor market.a. Suppose that a law required firms to give each worker $3 of fringebenefits for every hour that the worker is employed by the firm. Howdoes this law affect the marginal profit that a firm earns from eachworker at a given cash wage? How does the law affect the demand curvefor labor? Draw your answer on a graph with the cash wage on thevertical axis. b. If there is no change in labor supply how would this law affectemployment and wages? c. Why might the labor-supply curve shift in response to this law? Wouldthis shift in labor supply raise or lower the impact of the law on wagesand employment? d. As discussed in Chapter 6, the wages of some workers, particularly theunskilled and inexperienced, are kept above the equilibrium level byminimum wage laws. What effect would a fringe-benefit…
a. Why would a firm ever choose to offer profit-sharing to its employees in place of paying piece rates? b. Describe the free-riding problem in a profit-sharing compensation scheme. How might the workers of a firm “solve” the free-riding problem?
l.C<ldbelly Co. sells pencils in a perfectly competitiveproduct market and hires workers in a perfectly competitivelabor matkct. Assume that the market \\'age rate forworkers is $150 per day.a. What rule should Lead belly follow to hire theprofit-maximizing amount of Labor?b. At the profit-maximizing level of output, the marginalproduct of the last worker hired is 30 boxesof pencils per day. Calculate the p rice of a box ofpencils.c. Uraw a diagram of the labor market for pencil workers(as in Figure 4 of this chapter) next to a diagramof the labor supply and demand for Lcadbelly Co. (asin Figure 3). Label the equilibrium wage and quantityof labor for both the market and the firm. H0\\1 arethese diagrams related?d. Suppose some pencil workers switch to jobs in thegrowing computer industry. On the side-by--sidediagrams fmm part (c), show how this changeaffects the equilibrium wage and quantity of Laborfor both the pencil market and lor Leadbelly. Howdocs this change affect the…
Geralt works for Stregobor as a witcher earning $87,000 a year. He decides to quit his job andbecome a freelance witcher. As a freelancer, he spends $7000 on herbs and weapons. Insurancecosts him $1000 a year. He pays himself $145,000 as a salary. His total revenues for the year are$191,000. Based on this information, what were his economic costs as a freelance witcher?
Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
E2 Problem 1: Labor Unions. The aggregate supply of cricket players is given byw = 75 + 2Land the aggregate demand for cricket players is given byw = 315 −4L 1. First assume that the players and the teams are all in perfect competition.a) Find the equilibrium number of players. Find the equilibrium wage.b) Find the league surplus and player surplus. 2. Next assume that the players form a union, but the teams are in perfect competition.a) Find the equilibrium number of players. Find the equilibrium wage.b) Find the league surplus and player surplus. 3. Now assume that the teams also form a league, creating a bilateral monopoly. Theplayers have a well-established union, and thus have slightly more power in negotiation.In particular, the union’s bargaining power is β = 3 5.a) Find the equilibrium number of players.b) What is the wage that gives players all the surplus?c) What is the wage that gives league all the surplus?d) Find the negotiated equilibrium wage.e) Find the league surplus…
In the circular flow diagram, Government demand ........ and firm supply ........ Select one: O a. goods; labor. O b. Iabor; goods and services. O c. Iabor; labor. O d. goods and services; labor.
Andrea Mowry is a knitwear designer, and she has a firm DreaReneeKnits. She uses knittersas labour and only uses one variable cost – yarn – and one fixed cost – the price of knittingneedles. She pays R100 for a knitter, R50 for yarn and R100 for knitting needles. Use thisinformation to complete the table values askes and questions below. LABOUR TP MP AP TFC TVC TC ATC MC 0 0 - - 100 0 100 - - 1 2 2 2 100 150 250 125 150 2 5 (a) 2.5 100 300 (d) (e) 66.67 3 9 4 3 100 450 550 61.11 (f) 4 12 3 (b) 100 (c) 700 58.33 50 5 15 2 2.8 100 750 850 60.71 75 a. Complete values a-f.b. Using to the law of diminishing returns, place the concepts in order in which theyreach their turning points: average product, total product, marginal product. c. In the example above, at what value does average total cost and marginal cost reachtheir turning point? d. Beyond the turning point in average variable cost, marginal cost lies _______average variable cost.
Carolyn owns a soda factory and hires workers in a competitive labor market to bottle soda. Her company's weekly output a bottle soda varies with the number of workers hired, as shown in the following table. Complete the following table before answering: Number Of Workers Cases Per Week Total Revenue $ per week VMP $ per worker 0 0 1 200 2 360 3 480 4 560 5 600 A. If each case sells for $10 more than the cost of the materials used in producing it in the competitive market wage is $1000 per week how many workers should Carolyn hire? How many cases will be produced per week?…

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