Question
Consider a firm with a production function Q=LαKβ
operating in a perfectly competitive product market with price P. If the firm is a monopsonist in the labor market, its optimal hiring rule is determined by setting:Solution
Solution: A profit-maximizing firm hires labor until the marginal benefit of an additional worker equals the marginal cost of that worker: · Marginal Benefit: The extra revenue generated by one more worker, which is the Marginal Revenue Product of Labor (MRPL). (MRPL=MR×MPL). · Marginal Cost: The extra cost of hiring one more worker, which is the Marginal Factor Cost of Labor (MFCL). Since the firm is a monopsonist (a sole buyer of labor), it faces an upward-sloping labor supply curve, meaning MFCL>w. Thus, the monopsonist's optimal rule is MRPL=MFCL, which leads to a lower quantity of labor hired and a lower wage paid compared to a competitive market.
From the given responses, find the missing letter in the series.
BBD, CDG, DFJ, EHM, __.
What should come in place of ‘?’ in the given series?
16, 21, ?, 43, 60, 81, 106
Fill in the blanks BA_BA_BAC_ACB_CBAC
Select the set in which the number are related in the same way as the numbers of the following set.
(12, 30, 204)
Select the term from among the given options that can replace the question mark (?) in the following series.
B2Y, C3X, D6W, E9V, ?
In a certain code language, 'TEA' is coded as 78, and 'SHAKE' is coded as 220. How will 'COFFEE' be coded in that language?
If A is the son of Q, Q and Y are sisters, Z, is the mother of Y, P is the son of Z, then which of the following statements is correct?
Select the word-pair that best represents a similar relationship to the one expressed in the pair of words given below. (The words must be considered as...
Select the letter-cluster from among the given option that can replace the question mark (?) in the following series.
LOT, NRX, KNS, OSY, ?
...Select the figure from the options given below that can replace the question mark (?) and complete the pattern.Â
