Price ($ per unit output) ME P1 P2 P3 S-AE P4 P5 MV a1 a2 a3 Output Q4 Refer to above Figure. What price will the monopsonist pay when maximizing profit? P3 P5 P1 P4 P2
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- 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?If an industry is monopolized, then Labour Demand will be below the Labour Demand under competition. However, if the firm is also a monopsonist than labour demand can be either larger or smaller than under competition. True or FalseAll of Ruritania’s domestic energy needs are met through nuclear fission. Energy production isthe responsibility of a Government-owned company named Umbrella Corp.To generate energy, Umbrella Corp uses uranium. The uranium is supplied by OCP that mines itin the town of Zenda where it is the sole employer. For reasons of state OCP can only sell whatit extracts to Umbrella Corp. As OCP is the only employer in Zenda it is a monopsonist in the labor market, while UmbrellaCorp is a monopsony when it buys uranium from OCP. To mine one kilogram of uranium a day, OCP needs one unit of labor. The supply of laborif it pays a wage of w florins is given by S(w) = 2w. Each kilogram of uranium that Umbrella Corp. buys from OCP can be used to produce 360,000kilowatt-hour of energy. In addition to the purchase price of uranium, Umbrella Corp incurs anadditional unit cost of 35,800 florins per kilogram of uranium used for energy production. The energy produced is then sold by Umbrella Corp to consumers…
- You are asked to analyze a market with a single employer (a monopsonist) and many workers willing to supply The labor supply and demand are given by the equations below: Ls = −45 + 3w Ld = 270 − 6w a. Find the deadweight loss in this market with a monopsonistA pure monopsony buyer of a resource, in this case, labor L, has a marginal value curve for labor expressed as MV=140-0.4L Its total expenditure function is TE=20L+0.1L2 a) Suppose the firm acts as a monopsonist, What wage will it pay workers and how many hours of labor will the firm hire b) what is the value of deadweight loss given the firm is acting as a monopsonist?Question 16 : What is meant by a " price taker " ? Question 16 options : a ) A monopsonist consumer can set the market price b ) No consumer or producer can determine the market price c ) Consumers have perfect information d ) Producers have more information than consumerse
- If Marginal Revenue (MR) is: d/dq = 2.050 - 18q - 4q2 a. Determine Revenue function b. Determine demand functionThe inverse labour demand curve of a monopsonist employer is W = 40,500 – 105L, where W is the annual salary and L is the number of workers hired. The labor supply is given by W = 10,600 + 104L. (a) The marginal expenditure equation is ME= . Do not include a comma in your answer. Please use capital letters (e.g. L not l) (b) To the nearest integer, the monopsonist would hire workers and, given that number of workers, the salary they would pay is, rounded to 2 decimal places (e.g. 4.12) . Do not include a comma in your answer.The inverse labour demand curve of a monopsonist employer is W = 41,500 – 101L, where W is the annual salary and L is the number of workers hired. The labor supply is given by W = 9,800 + 109L. (a) The marginal expenditure equation is ME=__________ (b) To the nearest integer, the monopsonist would hire ______ workers and, given that number of workers, the salary they would pay is, rounded to 2 decimal places (e.g. 4.12) ____
- Draw a graph to represent the optimal hiring decision of the Halifax Regional School Board (a monopsonist). This is a conceptual problem where you must draw and clearly label your axes to earn maximum points. Show the HRBS's optimal wage and employment level too. 2B. Now using the same graph or a neatly reproduced version of A – show what you would be the wage and employment level in perfect competition. If you believe monopsony generates a deadweight loss, don't forget to highlight this area in your graph. Lastly, what would be the effects of a minimum wage on HRSB's employment and wage level?(a) Explain why we might expect labor demand for a monopolist in the product market to be less elastic than labor demand under perfect competition ?A monopsonist’s products are sold in a perfect competitive market at a price of $6. If the firm’s TFC=5L+2L2 and in the short run, its marginal product equals 10. How many units of labor will she employ and what wage will she pay? Assume now the monopsonist firm’s product is in a monopoly market with demand function P=80-2Q. How many units of labor will she employ and what wage will she pay
