Questions from Microeconomics

Q: The demand for labor by an industry is given by the curve

The demand for labor by an industry is given by the curve L = 1200 ! 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. What is the equilibrium wa...

Q: Using the same information as in Exercise 8, suppose now that

Using the same information as in Exercise 8, suppose now that the only labor available is controlled by a monopolistic labor union that wishes to maximize the rent earned by union members. What will b...

Q: A firm uses a single input, labor, to produce output

A firm uses a single input, labor, to produce output q according to the production function q= 8 L . The commodity sells for $150 per unit and the wage rate is $75 per hour. a. Find the profit-maximi...

Q: Suppose that the wage rate is $16 per hour and the

Suppose that the wage rate is $16 per hour and the price of the product is $2. Values for output and labor are in units per hour. q………………………………………………….L 0………………………………………………….0 20………………………………………………….1...

Q: Assume that workers whose incomes are less than $10,000

Assume that workers whose incomes are less than $10,000 currently pay no federal income taxes. Suppose a new government program guarantees each worker $5000, whether or not he or she earns any income....

Q: Using your knowledge of marginal revenue product, explain the following:

Using your knowledge of marginal revenue product, explain the following: a. A famous tennis star is paid $200,000 for appearing in a 30-second television commercial. The actor who plays his doubles p...

Q: The demands for the factors of production listed below have increased.

The demands for the factors of production listed below have increased. What can you conclude about changes in the demands for the related consumer goods? If demands for the consumer goods remain uncha...

Q: Suppose there are two groups of workers, unionized and nonunionized.

Suppose there are two groups of workers, unionized and nonunionized. Congress passes a law that requires all workers to join the union. What do you expect to happen to the wage rates of formerly nonun...

Q: For a monopsonist, what is the relationship between the supply of

For a monopsonist, what is the relationship between the supply of an input and the marginal expenditure on it?

Q: Currently the National Football League has a system for drafting college players

Currently the National Football League has a system for drafting college players by which each player is picked by only one team. The player must sign with that team or not play in the league. What wo...