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In an economy labour supply: w=20+4L, labour demand: w=50-2L. Labour is organized in a Union acting as a monopolist. Find the level of labour employed in the economy and the unemployed one
Labour supply: w=20+4L, labour demand: w=50-2L.Labour is organized in a Union acting as a monopolist. We should find the level of labour employed in the economy in the point where...
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At L=4, K=4, the marginal product of labour is 2 and the marginal product of capital is 3. What is the marginal rate f technical substitution?
At L=4, K=4 MPl = 2, MPk = 3. Marginal Rate of Technical Substitution (MRTS) is the amount by which the quantity of one input has to be reduced when...
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Explain the concept of value of marginal product of labour. How is the labour demand curve related to value of marginal product of labour curve?
The marginal product of labor is expenses by unit, the value of the final product, which increases with each additional unit of labor used. When the marginal costs are equal...
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Evaluate the extent to which the competitive labour market model is useful and relevant in explaining wage determination within contemporary real-world labour markets
In a Competitive labour market, wage is determined by the interaction between demand and supply and the employees present in the labour market. An increase in demand or a reduction...
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Illustrate and carefully explain the impact of an increase in the income tax rate from 25 percent to 35 percent on the demand for labour, supply of labour, equilibrium wage and level of employment.
Higher expense rates on work pay and utilization uses lead to less work time in the legitimate market area, additional time working in the family area, a bigger underground economy,...
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At L=4, k=4, the marginal product of labor is 2 and the marginal product of capital is 3. what is the marginal rate of substitution?
At L=4, K=4 MPl = 2, MPk = 3. Marginal Rate of Technical Substitution (MRTS) is the amount by which the quantity of one input has to be reduced when...
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What is the effect on demand for labour and supply for labour,if government impose a minimum wage below the market wage
A minimum wage below the market wage implies an increase in the level of minimum wage.Unemployment level will be cut down because more people will get job opportunities.This shows that...
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Give three explanations why the real wage may remain above the level that equilibrates labor supply and labor
demand?
Solution:The real wage may remain above the level that equilibrates labor supply and labor demand because of minimum wage laws, the monopoly power of unions, and efficiency wages. 1.). Minimum wage...
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Give three explanations why the real wage may remain above the level that equilibrates labor supply and labor demand.
Minimum wage laws- these laws prevent wages from falling to equilibrium levels. Although most workers are paid a wage above the minimum level,for some workers especially the unskilled and...
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Consider the demand and supply of labour in the sugar industry. If there is a minimum wage in this industry (above equilibrium wage/price), then the effect of removing this minimum wage would be to
If there is a minimum wage in this industry (above equilibrium wage/price), then the removal of this minimum wage would decrease the equilibrium wage, and the actual equilibrium quantity will...
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