This topic contains a solution. Click here to go to the answer

Author Question: If clerical workers in your state voted to have a union represent them in negotiations with ... (Read 81 times)

haleyc112

  • Hero Member
  • *****
  • Posts: 600
If clerical workers in your state voted to have a union represent them in negotiations with employers, they would have monopoly power in wage determination.
 
  Employers would be in no position to exert monopsony power in their employment of clerks in this market due to the large number of employers in the market. Labor supply is given by LS = 50W - 100 (or, equivalently W = LS/50 + 2 ) Labor demand is given by LD = 700 - 25W (or, equivalently W = -LD/25 + 28 ) a. What is the equation for marginal revenue? b. Using the supply and demand equations, compute the wage rate and number of workers that would be hired when there is no union representation. c. Using the supply and demand equations, compute the wage rate and number of workers hired when the union represents workers and acts to maximize aggregate wages to all workers hired. d. Explain the impact of (c) on the competitive market.

Question 2

Many governments around the world attempt to improve the incomes of commodity producers by taking steps to increase the commodity price in the domestic market.
 
  Although this may reduce quantity demanded for the product, the action may be effective because: A) commodity supply tends to be inelastic, so quantity does not decline by much.
  B) commodity supply tends to be elastic, so producer income increases as a result of the higher prices and quantities.
  C) commodity demand tends to be inelastic, so higher prices generate higher sales revenue.
  D) commodity supply tends to be elastic, so producer income increases as a result of the higher prices and quantities.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Anonymous

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

a.
Marginal revenue is given by MR = (-2/25 )L + 28. It is twice as steep as labor demand and has the same vertical intercept.

b.
Equate LS to LD. Then we have
50W - 100 = 700 - 25W
W = 10.67
Plug W into labor supply or labor demand to get L = 433. (Since either the supply equation or the demand equation may be used here, students' answers will differ slightly due to rounding.)

c.
Find the value of L where MR = 0. This occurs at L = 350. Plugging this into the demand equation, we obtain W = 14.

Answer to Question 2

C




haleyc112

  • Member
  • Posts: 600
Reply 2 on: Jul 1, 2018
Excellent


tkempin

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Gracias!

 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

For a complete list of videos, visit our video library