Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter P3, Problem 11KC
To determine
The decrease in the supply of labor.
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Assume the labor market for loggers is perfectly competitive. How would each of the following events influence the wage rate loggers are paid? a. Consumers boycott products made with wood. b. Loggers form a union that requires longer apprenticeships, charges high fees, and uses other devices designed to reduce union membership.
When is an employer forced to keep the labor cost low?
A.
When the product demand is inelastic.
B.
When the employer is in a competitive product market.
C.
When the rate of unemployment is low.
D.
When certain skills are essential for production.
Explain the meaning and significance of the fact that the demand for labor is a derived demand. Why do labor demand curves slope downward?
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Similar questions
- When economists say that the demand for labor is a derived demand, they mean that it is... A. dependent on government expenditures for public goods and services B. related to the demand for the product or service labor is producing C. based on the desire of businesses to exploit labor by paying below equilibrium wage rates D. based on the assumption that workers are trying to maximize their money incomes.arrow_forwardFor each of the following determine the impact on the demand or the supply of labor and the effect on the equilibrium wage and quantity of labor employed. a. An increase in the price of capital. b. A union is formed which uses collective bargaining to obtain higher wages for its members. c. The marginal productivity of workers rises. d. People desire leisure more than ever before (e.g. it is Christmas Day). e. The wages offered in other labor markets requiring similar skills are now offering substantially higher wages. f. The fringe (non-monetary) benefits offered in this market have increased substantially. g. The government has just adopted an "open-door' immigration policy?arrow_forwardThe maximum number of workers that a firm would hire isarrow_forward
- The Geneva Watch Corporation manufactures watches on a conveyor belt with six stations. One worker stands at each station and performs the following tasks:Workers get paid $10 per hour. You can ignore any idle time of workers resulting from the beginning or the end of the day. a. What is the labor content? b. Assume a demand rate of 50 watches per hour. What is the takt time? c. Assume a demand rate of 50 watches per hour. What is the target manpower? d. An external supplier suggests shipping the battery module with preinstalled batteries, thereby eliminating the need for step 10. How would that impact process capacity? e. How could you increase the capacity of the process by rebalancing it?arrow_forwardA.The market demand for labour is the sum of all the individual firms’ demand curves.Identify four factors that can cause the market demand curve to shift.B.Why are labour markets imperfect? Give five reasons.arrow_forward
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