Access over 20 million homework & study documents

search

Refer to the given data If this firm can hire as few or many wor

Content type
User Generated
Rating
Showing Page:
1/2
Refer to the given data. If this firm can hire as few or
many workers as it wants at $8, it is: selling its product in
a monopolized product market. selling its product in a
purely competitive product market. hiring labor in a purely
competitive labor market. hiring labor in a monopsony
labor market
Solution
Ans - It is hiring labour in a purely competitive market.
Explanation - In the given data above, the firm is hiring
workers (labour) at a fixed rate of $8 from the market. This
can only be possible if there is a perfect competitive
market for labour.
The average wages for all the similar types of labourers
tends to be equal across different industries and regions in
a purely competitive labour market, which is called the
equilibrium market wage.
A labor market in which there is only one firm demanding
labor is called a Monopsony. An example of a monopsony
would be the only firm in a market, where the workers all
work for that single firm. Unlike a firm operating in a purely
competitive labor market, the monopsonist does not simply

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/2

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
Refer to the given data. If this firm can hire as few or many workers as it wants at $8, it is: selling its product in a monopolized product market. selling its product in a purely competitive product market. hiring labor in a purely competitive labor market. hiring labor in a monopsony labor market Solution Ans - It is hiring labour in a purely competitive market. Explanation - In the given data above, the firm is hiring workers (labour) at a fixed rate of $8 from the market. This can only be possible if there is a perfect competitive market for labour. The average wages for all the similar ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Anonymous
Great! Studypool always delivers quality work.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4