What would the unions wage and hour demands be

Assignment Help Financial Accounting

Reference no: EM13749850

The dominant employer in Davis is UCD. Some argue that UCD uses its market power to lower the wages of some of its staff, especially those in lower-skill jobs. Show how this might work, using an inverse supply of labor of w = 3 + 0.1L, where L is the number of hours worked per month by the labor force (in thousands), and w is the wage paid, in dollars per hour. Suppose UCD’s inverse demand for labor is w = 13 - 0.2L.

A) What are the average expenditure and marginal expenditure for labor?

B) If UCD chooses to be a monopolist, what are the wages it will offer and the number of hours of work it wishes to hire?

C) Since the UCD staffs are unionized, the situation is more likely one of bilateral monopoly. What would the union's wage and hour demands be?

Reference no: EM13749850

Questions Cloud

About the sales budget : The rob Wallace corporation has a sales budget for next month of $400,000. Cost of goods sold is expected to be $250,000. all goods are paid for in the month following their purchase. The beginning inventory of merchandise is $16,000, and an ending i..

Discuss main factors in machiavellis approach to political : Identify and discuss three main factors in Machiavelli's approach to political thought and practice that are considered to be a break from the previous classicalist thinkers.

Benefit from just-in-time manufacturing : How do you think activity based management would benefit from Just-in-time manufacturing? What type of analysis could you use to determine if there is a benefit?

Defined benefit pension plan : Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2013. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of r..

What would the unions wage and hour demands be : The dominant employer in Davis is UCD. Some argue that UCD uses its market power to lower the wages of some of its staff, especially those in lower-skill jobs. What are the average expenditure and marginal expenditure for labor?

What is hebrew law based : What is Hebrew law based? Farming began during the Neolithic Period. Cuneiform was invented in Egypt. The pharaoh on earth was the embodiment of which deity?

Demand for one of its popular products at a constant rate : A store faces demand for one of its popular products at a constant rate of 3,300 units per year. It costs the store $65 to process an order to replenish stock and $15 per unit per year to carry the item in inventory. A shipment from the supplier is t..

Capital asset pricing model : What additional assumptions (to the main three) are important when applying the Capital Asset Pricing Model and what are the underlying strengths and weaknesses of this application? Discuss the reliability of the model and give examples in your ex..

Constant dollar percent increase in gross domestic product : In 1988 the US gross domestic product (GDP) increased to $4.90 trillion in actual escalated dollar values. In the same year, the consumer price index rose approximately 4%. What was the escalated (current) dollar percent increase in GDP? What was the..

User Account

All Pages