The table below shows the quantity demanded and supplied in the labor market for economics professors at the I'MaState University, where all the professors belong to a union. If no union existed, the equilibrium salary for economics professors will be.... Annual Salary $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 O $80,000 $70,000 $100,000 O $90,000 Quantity of workers demanded 95 80 65 50 35 20 Quantity of workers supplied 20 30 40 50 60 70

The table below shows the quantity demanded and supplied in the labor market for economics professors at the I'MaState University, where all the professors belong to a union. If no union existed, the equilibrium salary for economics professors will be.... Annual Salary $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 O $80,000 $70,000 $100,000 O $90,000 Quantity of workers demanded 95 80 65 50 35 20 Quantity of workers supplied 20 30 40 50 60 70

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter14: Labor Markets And Income

Section: Chapter Questions

Problem 3SCQ: Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in...

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Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
Name some factors that can cause a shift in the demand curve in labor markets.
What is die price commonly called in the labor market?
Give four explanations for why firms might find ii profitable lo pay wages above the level that balances quantity of labor supplied and quantity oflabor demanded.
he table below shows the quantity demanded and supplied in the labor market for economics professors at the l'MaStateUniversity, where all the professors belong to a union. If the union has enough negotiating power to raise the annual salary by $20,000 more than a non- unionized university would be willing to pay, then there will be excess of labor of economics professors.
Consider a manufacturing firm in a labor market that isperfectly competitive. There are two kinds of workers: productiveworkers whose marginal revenue product is $48,000 per year, andlazy workers whose marginal revenue product is $40,000 per year. Itis difficult for the firm to differentiate between productive andlazy workers. A local college offers a new yearlong astronomy course. Althoughthe cost of tuition is the same for both types of workers, thepsychic cost of having to work hard and get a passing grade islower for productive workers because they are able to learn morequickly than lazy workers. Therefore, the cost of taking the class(including the cost of tuition as well as the psychic cost) is$5,000 per year for a productive worker and $10,000 per year for alazy worker. Because astronomy has little relevance tomanufacturing, taking the class does not increase or decrease aworker's productivity. The firm uses the class as a way to differentiate betweenproductive and lazy…
Gopher Excavators produces shovels in a small factory and sells the shovels in a competitive market. The following table shows the company's production function: Labor Output (Shovels) (Number of workers) 0 0 1 100 2 195 3 275 4 340 5 380 Use the blue points (circle symbol) to plot the production function for Gopher Excavators on the following graph. (?) 400 O -O- 360 Production Function 320 280 240 200 160 120 80 40 0 O 0 2 2 5 LABOR (Number of workers) Calculate the marginal product of labor (MPL) of each worker, and then plot the MPL curve on the following graph using the blue points (circle symbol). Note: Remember to plot each point halfway between two integers. For example, when the number of workers increases from 0 to 1, the MPL of the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway between 0 and 1. Line segments will automatically connect the points. ? 100 90 80 70 60 50 40 30 20 OUTPUT (Shovels) MPL (Shovels per worker) 10 0 0 O 1 1 2…
The table below shows the quantity demanded and supplied in the labor market for economics professors at I'mAStateUniversity, where all the professors belong to a union. All of the economics professors could also work as economic consultants, but the market for economic consultants is not unionized. Annual Salary Quantity of workers demanded Quantity of workers supplied $50,000 95 20 $60,000 80 30 $70,000 65 40 $80,000 50 50 $90,000 35 60 $100,000 20 70 If the union negotiates an annual salary increase for economics professors that is $20,000 higher than the market wage rate for economic consultants, then the market wage rate for the consulting positions will _____________________ and the quantity of economic consultants employed will_____________________. Question 3 options: rise, rise rise, fall fall, rise fall, fall
The diagram provides supply and demand curves for a competitive labour market it a labour union negobates the wage to W, in an otherwise competitive labour market OA employers will hire L, labour OB. employers will here labour at the level higher than L OC. the supply of labour will stay the same OD equilibrium will occur at W, and L OE the demand for labour will stay the same 0 Wage Rate W₁ Quarnty of Labour Supply Demand
suppose Fred produces 500 litres of milk every day with 10 workers. the price of milk is $12 per litre, and each worker is paid $550 daily. if th margin product of the last worker employed is 40 litres of milk, explain whether Fred is maximizing his profit. If not, can Fred incrase his profit by employing more or fewer workers? If Fred buys more dairy cattles, how will it affect his demand for labor? Explain with a diagram.
Town 1 Town 2 30 30 ME, ME, Labor Supply 27 27 24 24 21 21 Labor Supply 18 18 15 12 12 6. Labor Demand Labor Demand 12 3 4S 6 7 LABOR (Hours) 10 2 10 LABOR (Hours) Complete the following table with the profit-maximizing quantity of labor each salon wil hire, along with the wage it wil pay for each hour of labor. Town 1 Town 2 Labor 3 hours v 3 hours v Wage $10.50 V $9.00 In Town 1, the salon pays a wage that is the marginal value product of the final unit of labor hired, whereas In Town 2, the wage is v the marglnal value product of the final unit of labor hired. The outcome in is closer to that of a competitive market, glven that the supply of labor IsM elastic (at the market equilibrium) with respect to changes in the wage.
$ MC of Labor P1 Labor Supply P2 P3 P4 VMPL/ Nabor Demand Quantity Labor The information above is from the labor supply and production function for a firm that operates as a monopsony employer. What wage would this firm charge to maximize profit? O P2 P4 О РЗ O P1