pure monopsony buyer of a resource, in this case, labor L, has a marginal value curve for labor expressed as MV=140-0.4L Its total expenditure function is TE=20L+0.1L2 a) Suppose the firm acts as a monopsonist, What wage will it pay workers and how many hours of labor will the firm hire b) what is the value of deadweight loss given the firm is acting as a monopsonist?
Q: In penalty shoot-outs, the Nash Equilibrium strategies of goalies and players depend on how importan...
A: TRUE. The players will still try to equate his expected utility from each strategy given the other p...
Q: Suppose Alice decides to put some money in a new account that compounds twice per year. At the begin...
A: Compounding Compounding is the act of reinvesting an asset's profits, whether they be from capital g...
Q: Question 4 4(a) The following equation is associated with the Cobb-Douglas production function: AY/ ...
A: The correct answer is given in the second step.
Q: What is the smallest integer-valued annual compound interest that will result in an investment tripl...
A: smallest integer-valued annual compound interest that will result in an investmeñt tripling in value...
Q: All of the following are determinants of demand except
A: To find : Which is not determinants of demand.
Q: A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of...
A: Since you have posted a question with multiple sub parts, we will solve first three sub-parts for yo...
Q: If $1 USD = $1.09 CAD (Canadian dollar), which country has a stronger currency today? How do you kno...
A: Macroeconomics is important for a country and so is microeconomics an important part of people's liv...
Q: Some economists believe that new videogames have made leisure time a lot more fun. What might this d...
A: Answer: If the videogames have made leisure time more fun then young people will decrease their work...
Q: Some people try to make money by watching exchange rates and trying to get the best deal on their tr...
A: The rate that depicts the rate at which one currency is being exchanged for another currency is know...
Q: Inflation Targeting Federal Open Market Committee Sterilized vs. Unsterilized Foreign Currency Int...
A: Inflation occurs when, in the economy, the prices of goods and services shows a sudden increase.
Q: Consider an economy where the natural rate of unemployment rate is 5% and real GDP at full employmen...
A: A natural economy - is a kind of economy wherein cash isn't utilized in the exchange of assets among...
Q: What is the best explanation of opportunity cost in economics. Explain with example.
A: Opportunity cost The cost of choosing one option/things over another is known as opportunity cost.Th...
Q: Change in Demand of Meat Production and Supply Chain under COVID-19.
A: To find : Change in demand of meat due to covid-19
Q: 7. Explain the tools of Monetary Policy. With a table and example?
A: Monetary policy is a set of tools that a country's central bank can use to encourage long-term econo...
Q: 19. Recall the following public goods game from the class, where two roommates are trying to figure ...
A: Given information 2 players 2 strategy set for each
Q: 43. If income elasticity for a good is 2, then it is a A. Necessity item B. O Inferior good C. O Lux...
A: Elasticity of demand is used to assess the change in quantity demanded as a result of changes in dem...
Q: When Firm X increased the price of Good A by 8%, the sales of Good A decreased by 20%, while the sal...
A: Money has been evolved from long time ago and since the ages. It is currently used in the form of cu...
Q: Consider a competitive, price-taking firm that employs only one variable input, labor, to produce a ...
A: a) Given the table, the maximum profit is when 8 units of labor are hired and 63 units of output are...
Q: Alexis, Bruno, and Camila each want an ice-cream cone. Alexis is willing to pay $12, Bruno is willin...
A: Consumer surplus = Consumers' willingness to pay - Actual price that the consumer pays
Q: Answer the following questions about Comparative Advantage, Specialization and Trade. The link below...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: Last year 1000 galone of amond ma non dairy produt were soldprice of S0 Y yearabad harvestin Caomia ...
A: Given: Quantity of almond milk=1000 gallons Price=$10
Q: Identify the NonPrice determinants of demand in the dentistry field business (per factor) In the ave...
A: Determinants of Demand: Determinants of Demand are the factors that together contribute to the consu...
Q: a. Draw a Lorenz curve for an economy comprising of unemployed (with zero income), workers and emplo...
A: Lorenz curve is a graphical representation of wealth distribution in a society. It represents how un...
Q: A =? n = 00 i = 3% P = $12,000,000 Find: A
A: Given, n = ∞ i = 3% = 0.03 P = $12,000,000 For calculating A, In this case, we will use the given fo...
Q: If a game does not have an equilibrium in pure strategies, then it will not have an equilibrium in m...
A: Nash equilibrium in a game is a situation where there is no incentive to deviate from its chosen str...
Q: 7. Which of the following are sources of growth?
A: To find : Which is source of growth.
Q: MB. Homer and Bart both have income of $100, and the price of both the private good and a firefighte...
A: The correct answer is given in the second step.
Q: Free markets___ 0. always fail to produce the optimal quantity and/or price 0. can fail to provide t...
A: Equilibrium is achieved at the output level where Qs equals Qd
Q: 53. The upper portion of the kinked demand curve is relatively More inelacttio
A: To find : Upper portion of kinked demand curve is more relative to what.
Q: A textile firm in a competitive industry employs a particularly efficient manager to run the operati...
A:
Q: Rizal’s abandonment of assimilation. What led to Rizal’s shift in ideology? Was this shift justifiab...
A: Jose Rizal, also known as Jose Protasio Rizal Mercado y Alonso Rialonda, was a Filipino nationalist,...
Q: If you want to triple your money at an interest rate of 6.00% per year compounded annually, for how ...
A: To find the number of years it takes for the amount to triple, compound interest method is used.
Q: At Emory's Pens and Pencils when they produce 50 pens their total cost is $80. Emory's marginal cost...
A: Average Total Cost (ATC) can be calculated by dividing the Total Cost (TC) by Quantity (Q).
Q: The marginal revenue for a perfectly competitive firm is equal to the market price. Why is this not ...
A: In a perfectly competitive market, there are a large number of buyers and a large number of sellers,...
Q: 1. For each of the following utility function, compute the Hicksian demand function h(p, v), the exp...
A: Given Utility function U=X1+X2 Lets take Budget constraint P1X1+P2X2=W
Q: Consider a set of 1000 companies operating in a competitive market. The supply curve for this market...
A: According to the question, There are 1000 companies in a market. The supply curve for this market i...
Q: If inquiring is synonymous with investigation then what makes inquiry different from research which ...
A: Research is the process of systematic , scientific approach for finding , adding , new things in the...
Q: If P35, 000 is deposited now into a savings account that earns 6% per year, what uniform annual amou...
A: Given: Amount=P 35000 Interest rate (i)=6% Number of years (n)=10
Q: Mario and Chris are the only two consumers in a particular market for train tickets. The following t...
A: Market demand is the horizontal sum of all consumers demand for a good in a given period for differe...
Q: Your Subaru Outback broke down. It has 110,000 miles and is paid off. You take it to the dealership ...
A: If the Subaru outback broke down and it has run 110000 miles then it implies the Subaru has left wit...
Q: You and your friend Olivia are both volunteers at a cat rescue. The shelter supervisor asks the two ...
A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all ...
Q: homy is characterized by the equation 50-5Q, domestic supply is characterized by equation Q=0.5·P+35...
A: Both questions answers given below,
Q: Mandy would like to go on a backpacking trip through Europe after she graduates. She will graduate i...
A: Given Time left = 2 years Interest rate = 11 % Future cost = 2800 $
Q: Suppose the market for coffee is characterized by perfect competition. Assume that all firms are ide...
A: Answer: Given, LATC (long-run average total cost) function: LATC=Q+5+25Q LMC (long-run marginal cost...
Q: 110- 100- edian interest rate differential rises when e Canadian interest rate falls and the foreign...
A: The Canadian interest rate differential increases when,
Q: true or false If the agency relationship is undisclosed, the agent is
A: In an undisclosed office, a agent manages an outsider who doesn't have information that the agent is...
Q: What is the rate of return for the following incremental analysis. Investment 1 2 Initial Investment...
A: Incremental analysis: Incremental analysis is a decision-making technique used in business to determ...
Q: Exchange Rate Determination - Short v. Long Run The nominal money demand for the US is given by the ...
A: Given information Interest rate in US=5.263% Interest rate in Eurozone=3% Expected exchange rate=1.1
Q: The birth rate of the United States in 2014 and 2015 was 12.5 births per 1000 people, and the death ...
A: Given: The birth rate of the US = 12.5 births per 1000 people The death rate = 8.2 death per 1000 p...
Q: A monopolist if it chooses to sell fewer units of output. a. can set its price wherever it desires O...
A: In monopoly, eqm quantity is found by the intersection of MC(marginal cost) and MR(marginal revenue)...
A pure monopsony buyer of a resource, in this case, labor L, has a marginal value curve for labor expressed as
MV=140-0.4L
Its total expenditure function is TE=20L+0.1L2
a) Suppose the firm acts as a monopsonist, What wage will it pay workers and how many hours of labor will the firm hire
b) what is the value of
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage rate required at each level of employment. What is the monopsonists marginal cost of labor at each level of employment? If each unit of labors marginal revenue product is 13, what is the firms profit maximizing level of employment and wage?Suppose that the Ebay warehouse behaves as a monopsonist in the local labor market. Assume that its labor supply curve is w(LS) = 4LS and its labor demand curve is w(LD ) = 42.8−2LD. To maximize its profits: a. how many units of labor will Ebay hire and b. what wage will Ebay pay? Now suppose that the local labor union goes on strike and Ebay is eventually forced to increase the pay of its workers to a competitive wage. What wage would Ebay then have to pay? c. Find competitive wage The correct answers are: a. 4.28 b. 17.12 c. 28.52The Happyland Hospital is a monopsonist employer of nurses in the small city of Happyland. The market supply function of nurses is S(W) = 0.25W - 30, where Wis the nurses' weekly wage. a. What is the hospital's marginal expenditure, ME? ⒸME = 120. ⒸME = 8L - 120. ME=8L + 120. O ME = 8L. $ ME = 4L + 120. Instructions: Round quantities to the nearest whole number and all other answers to 2 decimal places as needed. b. If the hospital's marginal benefit is $4,000 per week no matter how many nurses it hires, what is the profit-maximizing number of nurses for the hospital to hire? c. What will the nurses' wage be? $ 16000 d. What is the deadweight loss? nurses. 0 x
- Assume a monopsony uses only one factor, i.e. labor, L, to produce a final good, Q, which is sold in a competitive market at the price p = 1 to maximise profits. The production function of the monopsonist is given by Q (L) = 100L - 1L². The inverse supply curve for labor is w(L) = 2 20 + 2 L. a. Derive and describe the monopsony's inverse demand curve for labor. b. Describe algebraically and graphically how many units of labor the monopsony hires and at what wage. Describe the nature of monopsony power and provide economic intuition.A firm produces output, measured by O, which is sold in a market in which the price P=20. The output is produced using only labor as an input; the production function is Q(L) = L. There are many suppliers of labor, and the supply oflabor is determined by W= 2L, where w is the wage rate. The firm is a monopsonist in the labor market.a) How many units of labor will be hired by the monopsonist? What wage rate will the monopsonist pay? What is the monopsonist's profit?b) If the firm behaves like a firm in a perfectly competitive marker, how many units of labor will the firm hire and what wage the firm will pay? What is the firm's profit?c) What is the dead weight loss ofmonopsony?The employment of teaching assistants (TAs) by major universities can be characterized as a monopsony. Suppose the demand for TAs is W = 30,000-125Q, where W is the wage (as an annual salary) and n is the number of TAs hired. The supply of TAs is given by W = 1,100 + 75Q, and the marginal expenditure curve is ME = 1,100 + 150Q. a. If the university takes advantage of its monopsonist position, how many TAs will it hire? What wage will it pay? (Round your responses to two decimal places.) The university will hire TAs at a wage of $ per year.
- Jacob owns company that offers jeans in a perfectly competitive product market. Jacob is a monopsonist in the labor market, and the table below shows the wages necessary for workers to supply their labor to Jacob's firm. Total Wage Bill Marginal Wage Employment Wage (TWB) Cost (MWC) 1 20 30 3 40 4 50 60 Question A Calculate the firm's total wage bill and marginal wage cost in each empty cell for the table above. Question B Referring to the table above, by how much does profit change with the hiring of the fourth worker if the marginal revenue product of the fourth worker is $90? 24 Question C Referring to the table above, if minimum wage was implemented by the government and set at a wage of $50, how would profit change for hiring the fourth work with a marginal revenue product of $90? $ Question D Assume now that the demand for labor is linear and is such that the firm would be willing to hire 1 worker for $80, 2 workers for $70, and so on. Using only the supply information in the…1) A firm has production function of f(x) = -x² + 120x, it is also a monopsonist in the input market x. The market price of each output is 1. Suppose there are 10 identical price taking firms supplying input x with cost function C(x) = x² + 30. a) Solve the short run equilibrium price, quantity and profit for each firm supplying input x. b) What is the deadweight loss? c) Suppose there is free entry and exit in the market of input x. Do you expect more firms to enter or existing firms to exit in the long run? How many firms supply x in the long run? 115 11 d) Now, suppose the government sets the minimum price of x at $- What quantity and price of x will the monopsonist choose to maximize profits in the short run? What is the deadweight loss?Big Cheese Inc. is the only employer in a small town in rural Louisiana and thus acts as a monopsony-that is, a buyer's monopoly. Its main product is cheddar cheese, which it sells in a perfectly competitive market. The following graph shows the marginal revenue product of labor (MRP) curve it faces, its labor supply curve, and its marginal factor cost (MFC) curve. Use the black point (plus symbol) to indicate the quantity of labor Big Cheese Inc. will hire and the wage rate it will pay for its workers. WAGE RATE (Dollars per hour) 60 57 54 51 48 45 42 36 33 30 27 12 9 H MRP MFC 3 0 0 1 2 3 4 5 6 7 8 9 10 QUANTITY OF LABOR (Workers per hour) Monopsonistic Outcome Labor Supply Big Cheese Inc. will hire workers at a wage rate of $ per hour. (?) Which of the following explains why the MFC curve lies above the labor supply curve? ◇ Each worker must be paid benefits in addition to the wage rate. ○ The marginal cost of hiring an additional worker includes not only that worker's wage but also…
- 14. A Sixteen Tons Question: A coal mine in a small town is a monopsony with a supply of labor function given by w = 4L. Its production function is given by Q = ½L. The coal it produces is sold in a PC market at a price of $32. A) What is this monopsony’s MFC function? B) How much labor will the mine hire and what will be the wage?You are given the following information about a monopsonist: The demand is P= 25-0.25Q, the average expenditure curve is AE = 0.5Q, and the marginal expenditure curve is ME = 1Q. The quantity (Q) is in thousands of units. Given the information above, how much will the monopsonist purchase, and how much will it pay? (Round your responses to two decimal places.) The monopsonist will purchase thousand units at a price of $ per unit.Q. 2 Suppose a firm is the sole employer in town, facing a labor supply curve w(L) = 0.5L. This monopsony is a price taker in the output market and has demand for labor DL = 200 – L (this is the marginal revenue product of labor). a) Calculate the total L demanded by the monopsony and compare it with perfect competition. b) Calculate producer surplus, compare it with perfect competition. c) Calculate consumer surplus and compare it with perfect competition. d) Calculate DWL for this monopsony, comparing it to perfect competition.
