The inverse labor demand function is W = 200 – 2L, where W is the wage and L is labor.  Labor revenue is WL, and labor supply is W = 2L. (a) Suppose that the labor market is competitive. What is the wage?  Employment? (b) Now suppose that a union dominates the labor market.  What is the wage?  Employment? (c) What do you conclude about the impact of unions on labor markets?

The graph above shows a labor market and a typical individual firm that is hiring labor from that market. (a) If WM = WF, from what type of labor market does the firm hire its workers? (b) Assume the productivity of workers increases as a result of improvement in technology. What will happen to each of the following in the short run? The market demand for labor (i) The wage rate the firm will pay Explain.

Hand written solutions are strictly prohibited

3. A monopsonist's inverse demand for labor can be written as D-'(w) = VMP(E) = 40 – 0.005ED. Labor is supplied to the firm according to the inverse supply function S-(w) s(E) = w = 5+ 0.01E3. %3D

One of these four answers could cause the demand curve for labor to shift to the right. Which one? Group of answer choices a decrease in the firm's product price an increase in demand for the firm's product a decrease in labor productivity an increase in the wage rate

Wage rate Wage rate Sector 1 Sector 2 (union) (nanunion) W. W. D2 D, G Employment Employment Assumptions: These two graphs show two sectors of the labor market for a particular kind of labor, Relevant product markets are competitive. The two labor demand curves are identical. Initially the quantities of labor employed in the two sectors are L1 and L, and the wage rate in each sector is Wf all the workers who lose their jobs in the union sector because of a Wn to Wy union wage increase are reemployed in nonunion sector 2, output in that sector will

Q8 In the Canadian labour market, demand for labour can be impacted by elasticity of the product in which  labour is an input. Suppose that the labour cost to total cost ratio in industry A (cannabis sector) is 14 percent, while in industry B (fertilizer sector)  it is 68 percent. Other things equal, labour demand will be Multiple Choice   more elastic in industry B than in A.   constant in both industries A and B.   relatively elastic in both industries A and B.   relatively inelastic in both industries A and B.   more elastic in industry A than in B.

Consider two states that adopt different laws concerning labor unions. The following graph shows the labor market in a state in the North. Initially, the market-clearing wage there is $8.00 per hour. Suppose that the legislature in this northern state passes laws that make it easy for workers to join a union. Through collective bargaining, the union negotiates a wage of $10.00 per hour. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. 020040060080010001200140016001614121086420WAGE (Dollars per hour)LABOR (Thousands of workers)Demand Supply  Graph Input Tool   Market for Labor     Wage (Dollars per hour)           Labor Demanded (Thousands of workers)       Labor Supplied (Thousands of workers)     Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, union workers will be employed.…

Consider the labour market for farms during the harvest season. Assume the market is perfectly competitive, with a labour demand function QD = 10-P and a labour supply function QS = 3P, where P is the wage. a) What are the consumer (farm owners) surplus and producer (farm workers) surplus in equilibrium? b) What is the price elasticity of demand at the equilibrium? c) Suppose the government subsides the farm owners (consumers) $1 for every unit of labour purchased. Then, compute the quantity of labour traded in the market, the wage received by the workers and the wage paid by the farm owners. d) Calculate the consumer surplus and producer surplus in the presence of the subsidy in part c).

Consider the labour markets for skilled labour and unskilled labour.  The labour demand curve for skilled workers is given by w = e(150 - 5L)/100. The labour demand curve for unskilled workers is w = 50 - 2L. The labour supply for each of the two labour markets is given by L = 20. The effort of firm's skilled workers depends on their wage according to the following schedule: wage (w) 20 25 30 35 40 45 Effort (e) 16 24 30 34 36 36 a) Calculate the equilibrium employment, unemployment, and wage for unskilled workers. b) Calculate the profit-maximizing contract (w,e). c) Calculate the equilibrium employment, unemployment, and wage for skilled workers. d) In a single labeled graph in (w - L), illustrate the labour market equilibria for skilled and unskilled workers. e) Calculate the cumulative income distribution for each labour market by reporting the cumulative shares for the following percentiles: 50% and 100%. f) In a single graph, construct the Lorenz curve representing labour…