EBK MICROECONOMICS
5th Edition
ISBN: 9781118883228
Author: David
Publisher: YUZU
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Question
Chapter 11, Problem 11.32P
To determine
The magnitude of the marginal revenue product of labor in relation to the wages paid to workers currently.
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Consider a monopsonist that hires 4.28 units of labor at a wage of 19.26. If the marginal value placed on the last worker hired is 41.22
a.) what is the elasticity of labor supply for this monopsonist?
The more elastic the labour supply is, the smaller the wage paid by a monopsonist.
True
False
small hospital in rural Alaska is a monopsony employer of nurses. The nurses unionize. They have little power at the bargaining table, but they do bargain for a slightly higher wage. What happens to the number of nurses employed? What happens to labor costs and marginal labor costs?
Chapter 11 Solutions
EBK MICROECONOMICS
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