Explain four ways in which a firm might increase its profits by raising the wages it pays.

Q: what are the factors that will lead to an increase in demand for workers in an economy?

A: There are many factors that could lead to an increase in the demand for labor. Some of them are: 1.…

Q: If higher wages raise productivity, does supply and demand determine wages?

A:

Q: How do I find the real wage equilibrium on a labor market equilibrium?

A: The equilibrium real wage rate is found out at the intersection of the supply and demand for labour.…

Q: Discuss whether or not the trade unions and the government can do anything to increase the earnings…

A: Unskilled workers: It is utilized to allude to a section of the labor force related to a restricted…

Q: Explain the market and non-market factors that how wages may be determined in a labour market.

A: If we consider the labor market under perfect competition then the wage rate is set by the market,…

Q: What Is the Effect of the Minimum Wage on Employment ?

A: Minimum wage rate is the minimum wage that the employer should pay to the employee.  The minimum…

Q: Part a. What is the marginal physical product(MPP) of the third unit of labor hired? Part b. What is…

A: The marginal revenue productivity theory states that a profit maximizing firm will hire workers up…

Q: Explain the hedonistic wage function in short with a diagram

A:

Q: A school district received 750 applications for 10 new openings. What does this tell you about the…

A: Number of applications=750Number of openings=10From this,we can say that number of application is 75…

Q: Which of the following will cause the wages in a labor market to decrease? i. A tax that must be…

A: In the labor market, individuals serve their services as a worker or employee in the production…

Q: About what proportion of the variation of wages across workers is explained by factors that can be…

A: The wages are payments that the workers receive for their services. For permanent workers these…

Q: Who bears the motherhood wage penalty

A: Lower hourly pay is linked to motherhood.

Q: Explain why the marginal product of labour equals the competitive wage when there is equilibrium in…

A: A competitive firm will continue to hire workers till Marginal Revenue Product of the Labor ie MRPL…

Q: (i) Discuss the Hedonic Theory of Compensating Wage Differentials. (ii) To what extent is the main…

A: The Hedonic Theory of Compensating Wage Differentials explains the relationship between wages and…

Q: What is the theory of efficiency wages? If you were an employer, would you pay efficiency wages? At…

A: Wage is the sum of money that is paid to the workers by the employer on daily basis.

Q: graphically explain the effects of an increase in non-labour income to labour supply.

A: Labor supply is an upward sloping curve because with the increase in wages, the supply of labor…

Q: What is the difference between work and wages in the USA compared to other countries? What info…

A: Wages: it is the amount of money any workers get in order to do any work. Work: Work can be measured…

Q: here was an increase in demand for im-person shopping what would you expect to happen to equilibrium…

A: When the wage is high, workers want to work, and employers prefer to hire more workers when the wage…

Q: According to efficiency wage theory, what is NOT a reason that companies want to pay an efficiency…

A: Efficiency wage theory says that firms pay workers above competitive wage.

Q: Illustrate and explain the impact of a minium wage on the labour market

A: The minimum wage rate or the wage floor is a concept where the government authority fix is the…

Q: Analyse the factors determining the wage rate in the labour market.

A: Wage rate is how much base compensation paid to a laborer for every unit of time (according to hour…

Q: Which one of Marshall’s rules suggests why labor demand should be relatively inelastic for public…

A: The public school teachers and the nurses are a part of the production of some price inelastic…

Q: Explain the dual labor market?

A: A labor market is a type of market where the workers and employee communicate with one others. In…

Q: Suggest solutions to the limitations of the Efficiency Wage Model

A: The efficiency wage theory proposes that raising wages will enhance labour productivity because…

Q: Based on the figure below, which movement could be caused by an increase in the wages of oil…

A: There are many factors that shift the supply curve, one of which is cost of production.

Q: What happens to the reservation wage if nonlabor income increases, and why?

A: Reservation wages are those wages which are given to the labor so that they participate in the labor…

Q: What is the effect of an increase in the price of market goods on a worker’s reservation wage,…

A: The market price of the goods and services is the major component that affects other components and…

Q: How do wages affect labor supply?

A: The labor is an important factor of production and the wage is the income earned by labor for…

Q: : What is the effect of an decrease in the price of market goods on a worker's reservation wage,…

A: Reservation wage represents the lowest wage rate at which labor will be willing to work. If the…

Q: Why does the salary gap persist?

A: Wage discrimination happens when, because of the activity of the work market, comparable laborers…

Q: Jasmine can work as much as 64 hours per week. She receives $200 per week in non-wage income. Her…

A: Consumption of wealth is dependent on the wage rate system and the amount of wage a person earns.…

Q: Explain in two ways how the equilibrium wage can be disturbed

A: Equilibrium  wage is the wage rate which equates the demand and supply of the labor. The…

Q: Give three of explanations for how efficiency wages might work.

A: Efficiency wage is the concept which states that a worker increases his productivity with the…