EBK MICROECONOMICS
EBK MICROECONOMICS
5th Edition
ISBN: 9781118883228
Author: David
Publisher: YUZU
Question
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Chapter 11, Problem 11.32P
To determine

The magnitude of the marginal revenue product of labor in relation to the wages paid to workers currently.

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A firm produces output, measured by Q, which is sold in a market in which the price P = 20, regardless of the size of Q. The output is produced using only one input, labor (measured by L); the production function is Q(L) = L. There are many suppliers of labor, and the supply schedule is w = 2L, where w is the wage rate. The firm is a monopsonist in the labor market. What wage rate will the monopsonist pay? How much extra profit does the firm earn when it pays labor as a monopsonist instead of paying the wage rate that would be observed in a perfectly competitive
If the sole employer in a market is a monopsonist, the equilibrium number of workers hired will be ___ and the equilibrium wage will be ___ than they would be in a perfectly competitive market. a.Higher; higher b.Lower; higher c.Higher; lower
Which of the following is true?     When the marginal cost is greater than the average cost, there are economies of scale.     The average expenditure of a monopsonist is decreasing in the quantity purchased.     None of the other statements if true.     Positive accounting profits in a long-run competitive equilibrium reflect economic rents from scarce factors of production.

Chapter 11 Solutions

EBK MICROECONOMICS

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