1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vitek1552 [10]
3 years ago
9

A monopsonist’s demand for labor can be written as VMPE = 40 - 0.004ED. Labor is supplied to the firm according to w = 5 + 0.01E

S. Thus, the firm’s marginal cost of hiring workers when it hires off of this supply schedule is MCE = 5 + 0.02ES. a. How much labor does the monopsony firm hire and at what wage when there is no minimum wage? b. How much labor does the monopsony firm hire and at what wage when it must pay a minimum wage of $25?
Business
1 answer:
Mandarinka [93]3 years ago
8 0

Answer:

Wage rate = $34.16

E = 3,750

Explanation:

(a) As monopsonist’s demand for labor is written as VMPE = 40 - 0.004ED and the firm’s marginal cost of hiring workers when it hires off of this supply schedule is MCE = 5 + 0.02ES.

Now VMPE = MCE  is the point when monopsonist will be hiring labor.

Calculations:

40 - 0.004E = 5 + 0.02E  

40 - 5 = 0.02E + 0.004E

0.024E = 35

E = 35 / 0.024

E = 1,458 (approx)

Calculating Wage rate:

As the firm’s marginal cost of hiring workers when it hires off of this supply schedule is MCE = 5 + 0.02E(s)

therefore by putting the value of E(s) in the above formula, we get

Wage rate = 5 + (0.02 x 1,458)

Wage rate = 5 + 29.16

Wage rate = $34.16

(b) When it must pay a minimum wage of $25:

As monopsonist’s demand for labor is written as VMPE = 40 - 0.004ED

VMPE:

25 = 40 - 0.004E

0.004E  = 40 - 25

0.004E = 15

E = 15 / 0.004

E = 3,750

You might be interested in
You have been asked to appraise the market value of a three-bedroom house with two bathrooms that is going to be sold tomorrow.
Vladimir [108]

Answer: $252,000

Explanation:

Property worth $275,000, 4 weeks ago had 3 bedrooms and 3 bathrooms.

House to be appraised has 3 bedrooms and 2 bathrooms meaning it has one less bathroom than the other house.

Value of bathroom is $15,000 so;

= 275,000 - 15,000

= $260,000

House to be appraised was worth $260,000 4 weeks ago.

Prices have been reducing at $2,000 per week for four weeks.

= 2,000 * 4

= 8,000

Value of house = 260,000 - 8,000

= $252,000

3 0
3 years ago
In 2016, a grandfather gave a life estate to his grandson and a remainder interest to his granddaughter. Each interest is valued
ycow [4]
The gift to the grandaughter is <span>Partially shielded by the annual gift tax exclusion.   In the year of 2016, the federal government created </span><span>the </span>estate<span> and gift </span>tax exemption<span> is $5.45 million per individual.
Which means that the inheritence that given to the granddaughter would be tax free as long as it does not surpass the net value of 5.45 million.</span>
7 0
2 years ago
g Which of the following is true about T accounts? a.The left side of a T account is called the credit side. b.The right side of
svp [43]

Answer:

cl i think the answer is A

6 0
3 years ago
Today's workers are referred to as __________ and they use BI along with personal experience to make decisions based on both inf
Harrizon [31]

Answer:

Knowledge workers

Explanation:

Business intelligence (BI) refers to the application and practice of collecting and analyzing multi sources (such as suppliers, customers, partners) of information in-other to make better business decisions.

A knowledge worker is one that uses business intelligence with personal experience to make strategic business decisions valuable to the company.

8 0
2 years ago
Indicate the type of Deferred Tax account created by Unearned Revenues and Prepaid Expenses, respectively:
irina [24]

Answer:

The answer is Deferred tax asset and Deferred tax liability.

Explanation:

Unearned revenue creates deferred tax asset. In here, taxes have been paid because income has been received but have not been recognized on the income statement because according to the revenue recognition, the services for the revenue has not been rendered.

Prepaid expenses give rise to deferred tax liability. In here, taxes have been recognized on income statement but the actual tax has not been paid. Income tax expense on income statement is greater than taxes payable

5 0
2 years ago
Other questions:
  • Jedida is the new manager for a team in an advertising agency. Her team has worked together effectively for the last 10 years, a
    9·1 answer
  • The current market price of a share of Disney stock is $60. If a call option on this stock has a strike price of $65, the call c
    11·1 answer
  • Adapting to new conditions like new innovations by competitors, fast-changing technological developments, and constantly evaluat
    13·1 answer
  • Which of the following terms accurately describes functional strategies that are properly aligned, traceable to the business str
    15·1 answer
  • An online store promises to deliver any order costing over $60 within 24 hours. It uses this strategy to increase the volume of
    12·1 answer
  • Are people’s needs limited?
    5·2 answers
  • Jacob went to the grocery store to buy breakfast cereal. He picked up a few cereal boxes to look up their ingredients. However,
    15·1 answer
  • Given an interest of $11,900 at 6% for 50 days (ordinary interest) calculate the principal
    13·1 answer
  • The shape of the production function reflects the law of diminishing marginal product of labor.a. Trueb. False
    11·1 answer
  • Housing subsidies for low-income households:__________.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!