MANAGERIAL/ECON+BUS/STR CONNECT ACCESS
9th Edition
ISBN: 2810022149537
Author: Baye
Publisher: MCG
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Question
Chapter 5, Problem 11PAA
To determine
Basis of argument of union officials.
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Answer #5
(1) Based on the graph, which of the following factors can cause the market labor supply curve for the telecommunications industry to shift from S1 to S2? (the graph is attached on the bottom)
A-An increase in the marginal revenue product of every telecommunications firm
B-A decrease in the number of domestic residents immigrating to foreign countries
C-An increase in the wage rate of all telecommunications workers within the country
D-A decrease in the value of leisure time by all domestic telecommunications workers
E-An increase in the percentage of elderly individuals retiring from telecommunications
(2) In a monopsonistic market, firms will hire where ________ equals marginal revenue product and pay a ________ down to the supply curve.
A-demand; wage rate. B-demand; product price. C-marginal resource cost; wage rate
D-marginal resource cost; product price. E-marginal factor cost; product price
The market for plumbers in Boston is currently
in equilibrium. Labor supply is given by Ls = 3
x W and labor demand is given by Ld = 45 -
W (where L = quantity of workers, Ls
quantity of workers supplied, Ld = quantity of
workers demanded, and W = wage). The
plumbers have just unionized and have
negotiated a wage of $25 for all plumbers in
Boston. How many plumbers do you expect
to be unemployed as the result of this
change? Please round your answer to the
nearest integer.
%3D
%3D
%3D
Chapter 5 Solutions
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