Why might some firms choose to pay workers a wage above the market equilibrium, even with a surplus of labor in the market? Check all that apply.Paying higher wages encourages workers to be more productive.Paying higher wages increases worker tumsover.Paying higher wages can reduce a firm's training costs.Paying higher wages tends to reduce the average experience level of a firm's workers.

Employers may choose for a variety of strategic reasons to pay employees more than the wage at which…

Answered: Why might some firms choose to pay…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In a competitive labor market if the wage is $10.00 than the MRC of labor is $10.00. True or false?
The equilibrium wage rate in an industry is determined by a) whether workers or management are better at negotiating. b) finding where the market supply curve indicates that the substitution effect and income effect of a wage increase are offsetting. c) the strength of the substitution effect relative to the elasticity of demand for labor. d) the intersection of the market demand curve for labor and the market supply curve for labor.
A competitive firm is selling a oroduct on Rs 30 . Is it possible that he sells the product on Rs 35 ? Explain this point with the help of diagram ?
Island City is located on a small island, while Plains City is located at the center of a large, ﬂat, featureless plain. Draw two labor-supply curves, one for each city. a. The supply curve for Island City is [steeper/ﬂatter] because. . . . b. The elasticity of supply of labor in Island City is [higher, lower].
5) In a period of deflation, the Fed would most likely A) decrease the required reserve ratio. C) All, A, B and D are recommended. B) Buy government securities. D) decrease the discount rate.
The elasticity of demand for labor is an important factor in the analysis of the effect of the minimum wage because Elastic labor demand tells us the firm is likely to raise prices inelastic labor demand suggests increasing the minimum wage is less harmful to workers inelastic labor demand suggests increasing the minimum wage is more harmful to workers Inelastic labor supply tells us there will be more unemployment. Inelastic labor demand tells us there will be more unemployment.
The profit maximizing condition for a firm selling its output in a competitive market and buying its resources in a competitive market is A. MRP = WAGE ONLY B. P = MC ONLY C. BOTH A AND B D. NEITHER A NOR B. (WRONG)
In 1997 and 1998, the economy expanded, increasing the demand for labor and pushing up wages. Change in Demand Increase Decrease Did not Change Indeterminate Change in Supply Increase Decrease Did not Change Indeterminate
After hiring the third emplyee, John was able to produce 110 units instead of 80 units without the third employee. The price of each unit is $10. What is the Marginal Revenue Product of the third employee. $800 $1100 $3000 $1900 Not Enough Information
Boeing created, and recently expanded, an airplane manufacturing center in Charleston, South Carolina. One of the factors that likely influenced this location decision is that South Carolina is a "right to work" state. This represents a) a place factor related to labor. b) a transportation factor related to the market. c) higher wages for Boeing workers in South Carolina relative to Washington. d) a place factor related to the political environment.
What is the best example of paid housework? the husband taking care of the lawn the wife doing all the laundry the child helping the mother with cooking a babysitter providing professional childcare service
Suppose a firm purchases labor in a competitive labor market and sells its product in a competitive product market. The firm’s elasticity of demand for labor is -0.4. Suppose the wage increases by 5 percent. What will happen to the number of workers hired by the firm? What will happen to the marginal productivity of the last worker hired by the firm?

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