Describe wage determination in a labor market in which workers are unorganized and many firms actively compete for the serVices oflabor.a. Given the competitive market for labor shown In the diagram on the left, indicate the equilibrium wage rate and the equilibriumquantity of workers hired by the firm.Instructions: (1) Use the tool provided 'A' to identify the quantity of labor hired by the firm and the wage rate paid. (2) Use the three-point shading tool 'Nonlabor' to identify the nonlabor costs. (3) Use the four-point shading tool 'Wage cost' to identify the wage costs tothe firm.A Single Competitive Firm50ТoolsCompetitive Labor Market4050ANonlabor3040Wage cost20301020D = MRPD = MRP101020304050Quantity of laborQuantity of laborWage rate (dollars)Wage rate (dollars) Instructlons: Enter your answer as a whole number.The labor supply curve of the individual firm isO perfectly elastic, because it can hire any number of workers at the going wage rate.O perfectly elastic, because the number of workers Is fixed.O perfectly Inelastic, because the number of workers Is fixed.O perfectly inelastic, because it can hire any number of workers at the going wage rate.The market supply curve isO upward sloping, because demand is downward sloping and equilibrium must occur.O perfectly inelastic, because firms can hire any number of workers at the going wage rate.O upward sloping, because in order to attract new workers, the wage must increase.O perfectly elastic, because firms can hire any number of workers at the going wage rate.b. What is the total wage cost to the firm?

The equilibrium in the labor market would result in the intersection of the labor demand and the…

Answered: a. Glven the competitive market for…

a. Glven the competitive market for labor shown In the dlagram on the left, Indicate the equilibrlum wage rate and the equllibrium quantity of workers hired by the firm.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Labor Markets And Income Distribution

Section: Chapter Questions

Problem 6SQP

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