For a profit-maximizing monopsonist (only person hiring), they will hire labor until the MCE=MRPE. Consult the following table which I have started to fill out. What is the optimal number of workers for this firm to hire if their product sells for $15. Workers 0 1 2 3 4 5 Wage MCE 0 3 9 21 30 39 3 15 *** ... *** Product/hour Revenue $0 $75 $135 0 5 9 12 14 15 ... *** *** MPE MRPE N/A N/A 5 75 4 60 *** *** *** *** ... www

For a profit-maximizing monopsonist (only person hiring), they will hire labor until the MCE=MRPE. Consult the following table which I have started to fill out. What is the optimal number of workers for this firm to hire if their product sells for $15. Workers 0 1 2 3 4 5 Wage MCE 0 3 9 21 30 39 3 15 * ... * Product/hour Revenue $0 $75 $135 0 5 9 12 14 15 ... * * MPE MRPE N/A N/A 5 75 4 60 * * * * ... www

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Complete the following labor supply table for a firm hiring labor competitively: Marginal Resource Wage Rate Marginal Revenue Product Units of Labor Total Labor Cost (Labor) Cost $14 - - 1 14 $38 14 28 3 14 24 4 14 20 14 14 14 10 2.
You are a labor economist trying to evaluate whether the labor market for computer scientists is competitive or monopsonistic. Based on previous research, you know that the production function for computers depends only on labor input: Y = -0.5L^2 + 10L; where Y is the output of computers and L is the quantity of labor used. The price of a computer is p = 2. You also know that the labor supply, as a function of the wage, for computer scientists is the following, where w is the wage per unit of labor: L = -10 + w. a. Find the equilibrium wages and employment (wc; Lc) that would prevail if the market for computer scientists were competitive. [Remember that a competitive firm takes the wage as given : that is, it assumes that the quantity of workers that it hires has no effect on the price of the next worker. (Of course, the equilibrium wage must equate demand and supply)].
If there is inelastic demand for your labor, how does that influence individual (or union) "bargaining power"?
The inverse labour demand curve of a monopsonist employer is W = 38,500 – 112L, where W is the annual salary and L is the number of workers hired. The labor supply is given by W = 10,700 + 100L. (a) The marginal expenditure equation is ME= . Do not include a comma in your answer. Please use capital letters (e.g. L not l) (b) To the nearest integer, the monopsonist would hire workers and, given that number of workers, the salary they would pay is, rounded to 2 decimal places (e.g. 4.12) . Do not include a comma in your answer.
Solve for and fill in the missing portions of the following table to derive the monopsonist's derived demand curve for labor and answer the following question: Number of Total Physical Marginal Physical Product Marginal Revenue Workers Product Price Product 246 9,557.10 32.70 1 32.70 247 9,589.75 32.65 1 32.65 248 9,622.35 32.60 1 32.60 249 9,654.90 32.55 1 32.55 250 9,687.40 32.50 1 32.50 251 9,719.85 32.45 1 32.45 252 9,752.25 32.40 1 32.40 253 9,784.60 1 32.35 254 9,816.90 32.30 1 32.30 Question: What is the marginal revenue from hiring the 253rd worker? $32.40 $32.30 $32.35
Question 6 Consider the file HW9 Monopsony. Currently the firm is hiring workers and paying each an hourly wage of The government wants to impose a minimum wage in the labor market. What minimum wage will result in the largest number of workers hired by this employer? How many workers will this employer hire under this minimum wage law? Minimum wage = dollars. Number of workers hired: dollars per hour. workers
What is a monopsony? What distinguishes a monopsony from a competitive employer of inputs
Answer this question based on the information in the table:If hiring the 7th worker increases total product by 5 units, and the price of each unit is $2, which of the following is true? Number of Workers Total Cost0 501 1102 1603 2004 2405 2506 2607 2808 3109 35010 400 The firm should not hire the 7th worker as MR<MC. Marginal revenue equals $2. The firm should hire the 7th worker as MR>MC. The firm should not hire the 7th worker as MR<TC.
23. Question 23 is based on the below-mentioned diagram illustrates a monopsony outcome. The monopsony firm MRP = marginal revenue product, MFC = marginal factor cost and the wage is determined by the labour supply curve at this level of output. In the absence of a union the monopsony firm hires Lm workers and pays them Wm. MFC wage Wu Wm Lm S O a. hire less than Lm workers. Ob. hire a maximum of Lm workers. Ochire greater than Lm workers. Od. None of the above. MRP Quantity of labor Suppose the union and firm negotiates a wage above Wu, the firm will A
Labor (workers per day) Total Product (per day) 10 4000 11 4389 12 4752 13 5083 14 5376 15 5625 The firm can hire as many workers as they want at the prevailing market wage of $150 a day per worker. In addition, the firm pays $200 a day for equipment. Enter ONLY numbers. No comma, units, or decimals. 1. What is the marginal product of the 12th worker? 2. What is the average product of hiring 12 workers? 3. What is the total variable cost per day if 12 workers are hired ? 4. What is the total fixed cost per day if 12 workers are hired?
Fill in the blanks: Workers Employed 0 1 2 3 4 Quantity Produced 0 15 25 33 39 Output Price ($) 10 10 10 10 10 Refer to the above table for a profit-maximizing, competitive firm. If the prevailing wage is $100, then the firm will hire worker(s).
Use the data in the tables to answer the question that follows. Market Price of Output Quantity Supplied of Output Quantity Demanded of Output $5 25,000 60,000 $10 50,000 50,000 $15 75,000 40,000 $20 100,000 30,000 $25 125,000 20,000 Firm Quantity of Labor Total Product 0 0 15 105 30 190 45 265 60 325 What is the marginal revenue product of the 45th unit of labor, assuming this market is perfectly competitive in both the factor and output markets? A-$30. B-$50. C-$63. D-$100. E-$2,650 (2) The marginal benefit to suppliers will be less than the marginal cost to the single buyer. This describes A-perfect competition. B-monopolistic competition. C-an oligopoly. D-a monopoly E-a monopsony