How will that wage compare to the mrpl

Assignment Help Econometrics
Reference no: EM13203659

Suppose that the supply curve for the labor to a firm is given by:

L=100w

And the marginal expense of labor curve is given by:

MEL= L / 50

Where w is the market wage. Suppose also that the firms demand for labor (marginal revenue product) curve is given by:

L= 1,000- 100MRP1

A. If the firm acts as a monoponist, how many workers will it hire in order to maximize profits? What wage will it pay? How will that wage compare to the MRPl at the employment level?

B. Assume now that the firm must have its workers in a perfectly competitive labor market, nut it still acts as a monopoly when selling its output. How many workers will the firm hire now? What wage will it pay?

Reference no: EM13203659

Questions Cloud

What effect will the pay have on cigrattes optimal price : The U.S. Cigarette industry has negotiated with Congress and government agencies to settle liability claims against it. Under proposed settlement, cigarette companies will make fixed annual payments to government based on their historical market s..
Define what are the dimensions of the least expensive can : The cost per square inch of constructing the metal top and bottom is twice the cost per square inch of constructing the cardboard side. What are the dimensions of the least expensive can?
How many robots will the firm emply for the year : The robotics corporation produces cuddly toys using only computer driven robots. The quantity of toys (t) produced per year is given by T = 10r where r is the number of robots used during each year of production If the market price of robotics 200..
Explain a structured data type : a simple data type T or F2. All data members of a class must be of the same data type. a structured data type
How will that wage compare to the mrpl : Suppose that the supply curve for the labor to a firm is given by: L=100w And the marginal expense of labor curve is given by: MEL= L / 50 Where w is the market wage. Suppose also that the firms demand for labor (marginal revenue product) curve is gi..
Define a line passes through the points : A line passes through the points (-8, 1) and (x2, y2), and has a slope of 7/14. If point (x2, y2) is located in quadrant I
Whats the monthly payment : Whats the monthly payment and how much is the borrowers income tax write off in the first year?
Explain a population is expected to change : A population is expected to change according to the function and where P(t) is the population t months from 1st January 2001.
Explain the distribution of food expenditures for the family : Assume the distribution of food expenditures for the family of four follows the normal distribution, with a mean of $490 and standard deviation of $90.

Reviews

Write a Review

Econometrics Questions & Answers

  When the allocatively efficient output is being produced

What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output Q1 level is being produced How large is the dollar value of the consumer surplus at that output Q1 level

  How much withdrawals made and the balance left in account

Robertson Inc. wishes to set aside lump sum money to withdraw from and invest in automating parts of its business over the next 5 years. This money is expected to earn compound interest at the rate of 10% per year.

  How will the firms optimal input choice change

What are the current prices of capital and labor, based on the graph b. Suppose that the price of labor increases, if the firms wishes to continue to produce the current level of output how will the firms optimal input choice change

  What is the marginal rate of transformation of wheat

In this exercise, you will find actual points on the combined PPC of the two states. For each of the following values of one good, calculate the maximum amount of the other good that the two countries could produce working together.

  How much will be sold and what will the price be

If the industry is regulated in a way that requires it to set P = AC, how much will be sold and what will the price be c) If the industry is regulated in a way that requires it to set P = MC, how much will be sold and what will the price be

  What price will it set and how much money will it make

Suppose that a paper mill "feeds" a downstream box mill. For the downstream mill, the marginal profitability of producing boxes declines with volume. The 1st unit of boxes increases earnings by $10, the 2nd by $9, the third $7, and so on, until th..

  Company short run costs

A company experiences rising returns to scale; that is, doubling all its inputs more than doubles its output. What can be inferred about the company's short-run costs?

  What is the per plant and total level of pollution abatement

The mayor considers engaging in direct quantity regulation (also called "command- and-control") and declares that each firm must engage in 42.5 units of pollution abate- ment. If the plants are controlled by the same firm, would it be socially optima..

  What will be the excess demand for apartments

Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by Qs = -1000 + 20P Qd = 50000 - 10P

  Determine how many firms with average ceos

Consider an industry in which chief executive ocers (CEOs) run rms. There are two types of CEOs: exceptinal and average. There is a fixed supply of 100 exceptional CEOs and an unlimited supply of average CEOs. Any individual capable of being a CEO..

  Calculate the sales of cfc cornflakes this year

competitive brand of cornfl akes, in dollars per 10- ounce box P M = price of milk, in dollars per quart A = advertising expenditures of CFC cornfl akes, in hundreds of thousands of dollars per year This year, P X = $ 2, I = $ 4, P Y = $ 2.50, P M..

  Comparative banking assignment on market power

ASB2505-3505 - Comparative Banking Review the theoretical relationships between market structure and bank performance and explain what is meant by market power and how it affects bank performance.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd