What is the equation for the union marginal revenue curve

Reference no: EM133440528

Questions: Consider the situation of a monopoly union confronting a labour monopsonist. Suppose the labour market is characterized by the following equations of supply and demand: W=100-3QL d

W=20+2QL s

a) What is the equation for the union's marginal revenue curve?

b) What is the equation for the firm's marginal expenditure (on labour) curve?

c) Illustrate this situation of bilateral monopoly in the diagram on the next page: In addition to the demand and supply of labour curves, be sure to show the union's marginal revenue curve and the firm's marginal expenditure curve, that you have determined above.

d) In this situation of "bilateral monopoly", what wage would the union like to receive? Identify this on your diagram.

e) What wage would the firm like to pay? Identify this on your diagram.

f) On what does the final wage that is settled upon, depend? Explain the findings of John Nash, in this regard.

Bonus: On what does the difference between the wage the union would like and the wage the firm would like, depend?

Reference no: EM133440528

Questions Cloud

What is the direct labour rate variance for product : What is the direct labour rate variance for Product ZN6 for the month of? April?

What would the budgeted cash receipts during september be : What are the expected cash collections during June and What would the budgeted cash receipts during September be

What does crowding out have to do with the effectiveness : Keynesian economists believe fiscal policy is more effective in taking the economy out of a recession than does monetary policy. Do you agree? Discuss.

What is a managers greatest challenge : what is a managers greatest challenge? What suggestions do you have for a new manager to overcome or at least minimize these challenges

What is the equation for the union marginal revenue curve : What is the equation for the union's marginal revenue curve? What is the equation for the firm's marginal expenditure (on labour) curve?

Determine for papst company for the month of may : calculate requirements 1 and 2 under the assumption that estimated collections in the month of sale equal 60% and in the first month following the month of sale

What is the binary addition of 1101 and 0010 : What is the binary addition of 1101 and 0010? The result of adding 1+1 is 0. In binary, the result of 0*1 is _?

Address the regulatory and financial statement differences : create is one of the most important decisions an enterprise makes. The extent of liability and control the owner will have depends on the form of the business

Compare the two policies effects on the quantity of housing : Compare the two policies' effects on the quantity of housing consumed, consumer surplus, producer surplus, government expenditure, and deadweight loss.

User Account

All Pages