Assume workers in labour market M are qualified to work in an alternative competitive labour market N, and vice versa. What will happen to the wage rate and level of employment in market M if there is an increase in the demand for labour in market N?

Q: 8. Three worker-consumers selling their labour services in a labour market have individual supply…

A: Answer: Given, Individual market supply functions: N1=-30+4WN2=-5+1WN3=-10+0.5W The reservation wage…

Q: what is the profit-maximizing level of employment?

A: The amount of persons employed in a given economy is referred to as the employment level. Employees…

Q: When economists say that the demand for labor is a derived demand, they mean that it is... A.…

A: Derived demand is the demand that is seen in the case of complementary goods where the increase in…

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: Which of the following would improve a worker’s marginal product? Group of answer choices an…

A: The marginal product of labour (or MPL) alludes to an organization's expansion in all-out production…

Q: Describe the two possible effects that an increase in the wage rate can have on labor supply. Which…

A: Wage rates are defined as the fundamental remuneration per unit of time or output. The amount of…

Q: Question 1. The table below provides income and consumption data in billions of dollars:…

A: Marginal propensity to consume: The marginal propensity to consume (MPC) is an economic concept that…

Q: At the given wage and price level, Live Happley should hire Suppose that the price of strawberries…

A: Labor Input (Number of workers)Total Output (Pounds of strawberries)00118234348460570

Q: perfectly competitive product market and hire labour in a perfectly competitive labour market.…

A: Demand for labor is a concept that describes the amount of demand for labor that an economy or firm…

Q: Refer to Figure 18-4. Assume that W1 = $20 and W2 = $22 and that the market stays in equilibrium.…

A: The profit maximization point for the employer will be the point where the wage and the marginal…

Q: Profit-maximizing firms will hire additional units of a resource up to the point at which the…

A: Marginal revenue product is the change in the total revenue due to additional unit of resource used.

Q: If the opportunity cost of working outside the home increases, then ________ the labor supply curve,…

A: When an individual, an investor, or a corporation chooses one option over another, opportunity costs…

Q: excess supply

A: Any good needs factors of production to produced. A major factor of production is labour(L). And the…

Q: Identify two reasons why a wage might rise above the market equilibrium,and describe their effect on…

A: Answer to the question is given below :

Q: Assume that wages are sticky in a downward direction. Show with the use of a graph what will happen…

A: Sticky wage refers to wage have slow response in change in performance of business entity or…

Q: Explain how search frictions arise in the labour market.

A: The market where demand and supply of jobs tend to meet with workers that provide services that tend…

Q: hich of the following would increase the demand for labor? There’s an increase in the number of…

A: The following problem has been answered as follows:

Q: If an individual labor supply curve bends backward at some high wage, so does the market labor…

A: The labor supply curve depicts the relationship between the quantity of labor supplied (L) by an…

Q: The figure below depicts a price-setting curve. Assume that the average product of labor X is given.…

A: Labor Productivity: The amount of output produced per unit of labor input, measured as the average…

Q: How each of the following situations will affect labour demand, i.e. if it will cause a movement…

A: Labor demand curve shows the inverse relationship between wage rate and quantity of labor demanded.…

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: Who has given the concept of wage fund theory? a) J.S. Mill b) Marshall c) Ricardion d) Jevons

A: According to the wage fund theory, the wages paid to the workers depend upon the available capital…

Q: In a competitive labor market any one firm has complete control over the wage that it pays its…

A: A market is a place where the buyers and sellers interact and exchange goods and services. A labor…

Q: Suppose that a large number of Canadian consultants decide to take employment in Europe due to…

A: Equilibrium is achieved at the output level where Ls equals Ld

Q: Which of the following events may increase labor demand? Check all that apply. A technological…

A: Labor demand refers to an economic principle derived from the output demand of a firm.

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

A: A firm hires workers and employees to serve their services at different levels of the production…

Q: To save money, some fast food chains are now having their customers place their orders at computer…

A: The introduction of the computer kiosks and the people ordering food using those kiosks only will…

Q: Assume the labor market for loggers is perfectly competitive. How would each of the following events…

A: Perfect competitive market refers to the market in which the price remains the same is equal to…

Q: The backward bending supply curve for labour:     depicts the decreasing labour costs involved in…

A: The entire amount of labor that workers are willing and able to offer to the market at various wage…

Q: Imagine there are 100 firms in a competitive product market who hire labour in a perfectly…

A: The competitive market structure is a market in which there are large number of buyers and sellers.…

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: According to the BLS, wage rates in Mexico are only about 10% of those in the US. What factors would…

A: Labor cost differentials refer to the differences in wage rates among various nations. This idea…

Q: how does current independent contracting affect the future of the labor market?

A: The labor market, otherwise called the job market, alludes to the stock of and interest for work, in…

Q: Kelsey owns a cotton candy shop that employs 7 people. The employees are paid $12 per hour, and a…

A: Factors of production are paid according to their marginal productivity. The profit maximisation…

Q: The graph shows the labor market for certified balloon artist in Chicago. Suppose that the World's…

A: The demand curve is a graphical representation of the relationship between the quantity of a good or…

Q: What is Dual labor market theory?

A: Labor market depicts the supply and demand of labor in the market. The intersection of both the…

Q: Present all the possible cases for which the labour supply will be vertical.

A: The labor supply curve marks the relationship between the wage rate and the labor available. The…

Q: Consider an economy with production function given by Y = AK0.5 10.5 where A is the total factor…

A: Production function : Y = AK0.5L0.5Where , A = TFP , K = Capital , L = labor Let the price of output…