Microeconomics: Principles & Policy
14th Edition
ISBN: 9781337794992
Author: William J. Baumol, Alan S. Blinder, John L. Solow
Publisher: Cengage Learning
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In which of the following industries is wage determination most plausibly explained by the model of perfect competition? The model of pure monopoly? The model of bilateral monopoly?
Odd-job repairs in private homes
Manufacture of low-priced clothing for children
Auto manufacturing
Which of the following is likely to increase the supply of labour?
a decrease in fringe benefits
a relaxation of restrictions on immigration
an increase in the value placed on leisure
a decrease in the population
The coal mining company is the d
of labor.
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- Which of the following is characteristic of a labor market that is a monopsony? Multiple Choice О The supply curve for labor lies above the marginal resource cost curve of the firm. О The type of labor available is relatively mobile from one industry to another. The firm's employment is a small portion of the total employment of that type of labor. The wage rate the firm must pay varies directly with the number of workers it employs.arrow_forwardWhat would you expect to happen to wages in a monopsonistic labor market?arrow_forwardQuestion: Describe how the wage rate and level of employment are determined if the labor market is purely competitive. Contrast this with the wage rate and level of employment that would exist if the labor market was controlled by a monopsonist.arrow_forward
- A single firm is the only employer in a labour market. The marginal revenue product, labour supply, and marginal factor cost curves that it faces are displayed in the diagram below. Use this information to answer the following questions. 1. How many units of labour will this firm employ in order to maximize it's economic profits? 2. what hourly wage rate will this firm pay it's workers? 3. What is the total amount of wage payments that this firm will make to its workers each hour? per Hour ($) Wage Rate, Marginal Factor Cost, Revenue Product and Marginal 28 20 13 10 0 1 3 1 C S X MFC MRP 1000 1600 Quantity of Labour per Time Periodarrow_forwardWhich of the following would increase the supply of labor? There’s a decrease in the number of workers The amounts of capital firms have increases The productivity of workers increases Immigration increases the number of workersarrow_forwardRefer to the graph. Comparing monopsony with pure competition in the sale of output and hiring of labor services, the difference in the wage rate will be: A: W1-W2 B: W2-W3 C: W1-W3 D: W0-W1arrow_forward
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