Question

19. If given a graph of the MRP, MFC, demand and supply for labor curves, how many workers will a firm want to hire? GRAPH IS NOT REQUIRED FOR THIS QUESTION. It is asking you what are the STEPS one must take using the MRP, MFC, and demand and labor supply curves to find out how many workers will a firm hire? This is a conceptional question.

PLEASE ANSWER.

Answer #1

In case we are also given the marginal factor cost besides the usual marginal revenue product curve and the labour supply function, we can observe that there must be a single buyer of labour services, that is, we have a monopsony.

In that case, the monopsony will hire that number of workers which is determined by the intersection of the marginal factor cost curve and the marginal revenue product curve. This is different from competitive market in which marginal revenue product intersects with the labour supply function and therefore a greater number of workers are hired.

In a competitive labor market, market labor demand and supply
functions are given as follows: LS = -2500 + 1000W; LD = 10500 -
625W, where LD = labor demand, LS = labor supply and W = hourly
wage. The production function Q = 88.8L - 0.5L2 of a
firm operating in this market where skiing vehicles are produced,
where Q = refers to production (output in units / hour) and L =
number of workers employed per hour. This...

Consider the supply and demand curves of a labor market.
(a) Argue graphically when a reduction in a payroll tax could
reduce unemployment
(b) Suppose in a labor market
that the wages of another, similar labor market increase. How does
this shift the labor supply and demand curves? What happens to wage
and employment?
(c) Suppose there is a boom in a
particular industry and at the same time, wages for the same types
of workers in a surrounding area...

3. The labor supply and demand equations in Mexico and the US
are Ndmex = 140 – 2 Wmex and Nsmex = 80 NdUS = 600 – 4 WUS and NsUS
= 260 (Notice: To make the exercise simple, we are assuming that
the labor supply curves are perfectly vertical at 80 in México and
at 260 in the US). where Ndmex and NdUS are the number of workers
demanded in Mexico and the US (in millions of workers). Wmex...

Given the Labor demand and Labor supply functions, L =
50 – 5w and L = 8 + 2w, sketch their graphs. Given the equilibrium
daily wage of 6€ reached when there are 20 workers. Suppose that
the actual Labor market situation is this: the daily wage is 8€.
Under this situation, find the difference between Labor demand and
Labor supply and show this clearly on the graph. Use simple
economics, everyday language to describe the actual Labor market
situation.

Explain how a surge in baby boomers retiring affects
the labor supply and demand graph and its connection to the
aggregate production function.
State if it increases or decreases each of the following:
equilibrium wage ______________
number of workers ____________
total output ________________
productivity (output per worker)________________
standard of living _______________

Suppose the market demand for labor and market supply of labor
are given as QD = 700−4W and QS = 5W −
200, respectively.
Find the equilibrium quantity of workers and the wage under:
(a) Perfect Competition
(b) Monopoly
(c) Monopsony

Suppose the demand and supply curves for pizza is given
by:
Qd =500 - 40P
and the market supply for pizza is given by:
Qs = 20P – 100
where P= price (per pizza).
In equilibrium, how many pizzas would be sold and at what
price?
Determine the quantity demanded and quantity supplied if the pizza
price is set at $8.00. Explain the market adjustment process.
Suppose the price of hamburgers, a substitute for pizza, doubles.
This leads to a...

When a worker's MRP is difficult to measure, for example, a
college professor or corporate CEO, wages can be determined by
the:
Supply of labor alone.
Minimum wage.
Wages the worker would receive in his or her best alternative
job.
Average wage of government workers.
1 points
QUESTION 4
The opportunity cost of working is the:
Wage rate plus the value of fringe benefits earned in the
process.
Wage rate earned in the process but not the fringe benefits....

Suppose the demand and supply curves for sparkling cider are
given by:
QD = 110 – 20P
QS = -32 + 13P
where QD is the quantity of sparkling cider demanded (in
thousands of bottles), QS is the quantity supplied, and P is the
price of sparkling cider (in dollars per bottle).
a. Find the equilibrium price and quantity of sparkling cider.
Round P to the nearest cent (hundredth) and Q to the nearest whole
number.
b.If price is set...

Draw the demand and supply of labor graph to demonstrate how
downwardly sticky wages can create unemployment during a
contraction in the economy. Explain your graph with words.

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