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The inverse labour demand curve of a monopsonist employer is W: 40,500 118L, where Wis the annual salary and L is the number at workers hired. The labor supply is given by W: 10,300 + 95L. (a) The marginal expenditure equation is ME= a . Do n_ot include a comma in your answer. Please use capital letters (e.g. L not I) (b) To the nearest integer. the monopsonist would hire Number workers and, given that number of workers, the salary they would pay is, rounded to 2 decimal places (e.g. 4.12) Number . Do n_ot include a comma in your answer. Which of the following statements best describes the game played by the employer and the employee in the labour discipline model? 0 The game is a simultaneous game in which the employer chooses the wage level and the employee chooses the effort level simultaneously. 0 The game is a one-off game in which the wage and effort levels are determined once and for all. 0 The worker selects the effort level that balances his desire to keep his job with his desire to not exhaust himself on the job. 0 The employer will attempt to maximise the firm's profits by offering a wage equal to the worker's reservation wage. A firm sells bagels for 10.48 each. With 6 workers the firm produces 54 dozen per hour, and with 7 workers it produces 62 dozen per hour. (a) To within two decimal places, the marginal revenue product of labor is & Number (b) Assume an 8-hour shift per worker and the labour market is perfectly competitive. To within two decimal places, the market hourly wage rate is f NumberThe figure below depicts the effect of an increase in the unemployment benefit on the workers\" best response curve. when the unemployment rate is 12%. Which of the following statements is correct following a rise in the unemployment benefit? Best response function with U=12% and low unemployment benefit Best response function with U=12% and high unemployment benet Effort per hour 0 m WH Hourly wage Reservation Wage set by wage rm 0 The efficiency wage at any given level of employment falls 0 The firm sets a lower efficiency wage. O The workers' reservation wage falls. 0 The firm's profit level falls. Which of the following statements are correct regarding the difference between markets and firms? C] Markets involve a decentralisation of power, while firms represent a concentration of economic power. C] Transactions within firms operate as contracts. Market transactions are not contracts. C] Working in a firm involves accumulation of firm-specific assets that will be lost if the connection to the firm is severed. C] It is possible to employ division of labour within firms, while it is not possible in markets. Which oi the following statements is correct regarding involuntary unemployment? Q When there is involuntary unemployment, the employment rent is zero. 0 There must be involuntary unemployment in an efficiency wage equilibrium. 0 When a firm sacks a worker against her wishes but she can get anotherjob immediately, there is involuntary unemployment. Q When there is no involuntary unemployment, firms must be employing workers without ever dismissing them
