What will happen if the productivity of labor increases? (a) The MFC will decrease as will the wage rate, while employment will increase (b) The VMP and MRP will increase and so will wage rate and employment (c) The MRP will decrease as will wage and employment (d) The LS will increase (e) None of the above 250200A firm that buys labor as a monopsonistand sells its product as a monopolist$MRP1501005050VMP00102020303040405050MFCLS

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Answered: 250 200 A firm that buys labor as a…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 15SQ

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T/F The patent can be a reason for the monopoly.
42 W W 0 Q' MRC Multiple Choice MRP Refer to the above graph. If the MRC increased: quantity would increase quantity would decrease. the firm would operate as a monopsonist the firm would increase the supply of labor
Consider a firm that is a monopolist in its output market and a monopsonist in the market for labour, the only input. The elasticity of demand for a firms good is -2 and the elasticity of supply for labor 4. What percentage does the revenue marginal product of labour exceed the wage paid by this firm by?
(a) Explain why we might expect labor demand for a monopolist in the product market to be less elastic than labor demand under perfect competition ?
explain the differences between a monopoly and a monopsony?
e table below shows levels of employment (Labor), the marginal product at each of those levels, and a monopoly's marginal revenue. Labor Marginal Product of Labor Marginal Revenue ($) Marginal Revenue Product ($) 1 24 0.80 2 20 0.75 3 16 0.70 4 12 0.67 5 8 0.65 6 4 0.64 Fill in the final column of the table by calculating the value of the marginal revenue product. If the monopoly operates in a perfectly competitive labor market where the going market wage is $11.20, what is the firm's profit maximizing level of employment in terms of quantity of Labor? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
If a firm is a monopolist in the output market and a perfectly competitive firm in the labor market, we know that at the profit maximizing amount of labor the a. value of the marginal product is less than the marginal revenue product. b. marginal revenue product is greater than the wage. c. value of the marginal product is greater than the marginal revenue product. d. value of the marginal product is equal to the marginal revenue product, and the marginal revenue product is greater than the wage. e. value of the marginal product is equal to the marginal revenue product.
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?
Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopolys marginal revenue. What is the monopolys marginal revenue product at each level of employment? If the monopoly operates in a perfectly competitive labor market where the going market wage is 20, what is the films profit maximizing level of employment?
Can a monopsony exercise monopsony power if the supply curve it faces is horizontal? Why or why not? Please explain.
This is a monopoly in the product market. Use the numbers given for labor input, TPP and P to answer various questions. You should do these questions using a scrap paper and then fill in the blanks, as many answers may depend on other answers. Labor Input TPP = Q P MPP Revenue MRP MR 10 100 50 n.a. 5000 n.a. 11 109 49 12 116 48 13 121 47 14 124 46 15 125 45 For this question, find MRP starting with labor input = 11. Write the integer numbers with no decimal place.
If an industry is monopolized, then Labour Demand will be below the Labour Demand under competition, unless the firm is also a monopsonist. True False

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		(a) The MFC will decrease as will the wage rate, while employment will increase
		(b) The VMP and MRP will increase and so will wage rate and employment
		(c) The MRP will decrease as will wage and employment
		(d) The LS will increase
		(e) None of the above

250 200 A firm that buys labor as a monopsonist and sells its product as a monopolist $ MRP 150 100 50 50 VMP 0 0 10 20 20 30 30 40 40 50 50 MFC LS