If a firm is a monopolist in the output market and a perfectly competitive firm in the labor market, we know that at the profit maximizing amount of labor the a. value of the marginal product is less than the marginal revenue product. b. marginal revenue product is greater than the wage. C. value of the marginal product is greater than the marginal revenue product. d. value of the marginal product is equal to the marginal revenue product, and the marginal revenue product is greater than the wage. e. value of the marginal product is equal to the marginal revenue product.

If a firm is a monopolist in the output market and a perfectly competitive firm in the labor market, we know that at the profit maximizing amount of labor the a. value of the marginal product is less than the marginal revenue product. b. marginal revenue product is greater than the wage. C. value of the marginal product is greater than the marginal revenue product. d. value of the marginal product is equal to the marginal revenue product, and the marginal revenue product is greater than the wage. e. value of the marginal product is equal to the marginal revenue product.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following statements about a monopsony market is not true? Di antara pernyataan berikut tentang pasaran monopsoni, yang manakah tidak benar? a. The monopsony firm restritcs its output and charges higher prices for its products. Firma monopsoni mengehadkan pengeluarannya dan mengenakan harga yang lebih tinggi untuk outputnya. b. As the sole (single) employer in the labor input market, the monopsony firm is able to hire fewer workers compared to the competitive market. Sebagai majikan tunggal dalam pasaran input buruh, firma monopsoni dapat mengupah pekerja yang lebih sedikit berbanding dengan pasaran kompetitif. O c. Welfare loss in the monopsony market can be measured by the difference in social surplus between the competitive and monopsony markets. Kehilangan kebajikan dalam pasaran monopsoni dapat diukur oleh perbezaan lebihan sosial di antara pasaran kompetitif dan monopsoni. d. A monopsony firm exploits its bargaining power by paying lower wages to its workers.
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In the following graph, the product market is whilc the labor market is MFC W. VMP Wa O perfectly competitive: a monopsonist Oa monopoly: competitive A monopoly:amonopsonist perfectly competitive: competitive Rate aage
e table below shows levels of employment (Labor), the marginal product at each of those levels, and a monopoly's marginal revenue. Labor Marginal Product of Labor Marginal Revenue ($) Marginal Revenue Product ($) 1 24 0.80 2 20 0.75 3 16 0.70 4 12 0.67 5 8 0.65 6 4 0.64 Fill in the final column of the table by calculating the value of the marginal revenue product. If the monopoly operates in a perfectly competitive labor market where the going market wage is $11.20, what is the firm's profit maximizing level of employment in terms of quantity of Labor? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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Explain with the use of examples the difference between the following concepts:producer surplus and economic profit
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