Monopsony, Microeconomics

Assignment Help:

Monopsony:

  1. Demonstrate (with a graph) how a minimum wage can increase both the wage and employment in a monopsony market even when the government sets the minimum wage above the wage that would be paid in a competitive market.
  2. Above what wage would a minimum wage render less employment than the monopsony market without a minimum wage?
  3. If the minimum wage was set at the competitive equilibrium wage (which would exist if not for the monopsonist), would there be any unemployment?
  4. If the minimum wage was set above the competitive equilibrium wage but below the MC of labor at the monopsony level of employment in a monopsony market, would there be any unemployment? If so, how much?
  5. The marginal cost of labor for a monopsonist is different from that faced by a firm in a competitive labor market. Describe the marginal costs of labor curves in each type of market. Why is the monopsonist's marginal cost curve steeply, positively sloped?

Related Discussions:- Monopsony

Utility and constrained optimization , Suppose the price of books is $15, t...

Suppose the price of books is $15, the price of movies is $5, and your income is $75. Assuming you have a desire to reach constrained optimization, how many movies will you buy? Ho

Describe the change in returns to scale & factor proportion, Before explain...

Before explaining returns to scale it will be instructive to make clear the distinction between change in the scale and changes in factor proportions. The difference between the ch

Coefficient of the explanatory variable, Problem: (a) Why is an error t...

Problem: (a) Why is an error term added to a regression and explain its importance in the OLS procedure? (b) Suppose we have a linear equation with a constant term, one expl

Determine the price charged by the profit maximizing cartel, In an industry...

In an industry with two firms, represent the outputs for these single product firms as q 1 and q 2 . The two firms decide to form a cartel and set their levels of output to maxim

MIF, What is the purpose of the IMF and why might the IMF be called the “le...

What is the purpose of the IMF and why might the IMF be called the “lender of last resort”? Discuss how three of the tools they use for establishing economic stability in a country

What is the distinguishing characteristic of institutions, What is the dist...

What is the distinguishing characteristic of institutions in the public purpose sphere? The distinguishing characteristic of institutions in the public purpose sphere is that t

Demand and supply, technological advance reduced the cost of computer chips...

technological advance reduced the cost of computer chips . explain using the demand and supply diagrams , how the the following markkets are affected in terms of price and quantiti

Write Your Message!

Captcha
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