This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why does a monopsony increase employment when faced with an effective minimum wage law? What will ... (Read 114 times)

Kikoku

  • Hero Member
  • *****
  • Posts: 540
on: Jun 29, 2018
Why does a monopsony increase employment when faced with an effective minimum wage law?
 
  What will be an ideal response?

Question 2

In the figure above, if the government provides a subsidy to colleges of 6,000 per student per year, what is the tuition?
 
  A) 10,000 per year
  B) 12,000 per year
  C) 8,000 per year
  D) 6,000 per year


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

guyanai

  • Sr. Member
  • ****
  • Posts: 349
Reply #1 on: Jun 29, 2018
Answer to Question 1

A monopsony hires the quantity of labor so that the value of marginal product of labor (VMP) is equal to the marginal cost of labor (MCL). This condition means that initially the VMP is above the wage (W). When a minimum wage is imposed, the marginal cost of labor decreases because it becomes equal to the minimum wage. Thus, the firm will hire more workers up to the point at which VMP = W.

Answer to Question 2

C


Kikoku

  • Member
  • Posts: 540
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

rleezy04

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Researchers have found that science instruction can be quite effective in grades 4 to 7. Researchers have found that science instruction can be quite effective in grades 4 to 7.
Mean scores for Erikson’s stage VI (Intimacy) for two cohorts. Scores for both cohorts increase ... Mean scores for Erikson’s stage VI (Intimacy) for two cohorts. Scores for both cohorts increase ...
Comparison of Employment and Self-Employment Comparison of Employment and Self-Employment
Effective Leadership and Management in Nursing, 9th Edition Effective Leadership and Management in Nursing, 9th Edition
Calculus help: Find the absolute minimum and absolute maximum f(x) = (x2 —1) on [-1.2] Calculus help: Find the absolute minimum and absolute maximum f(x) = (x2 —1) on [-1.2]
How to calculate the DRT to determine which is more effective against the pathogen How to calculate the DRT to determine which is more effective against the pathogen
Video: Metaphase I Animation

For a complete list of videos, visit our video library