Chapter 14: Q. 30 (page 351)
Will a free market tend to encourage or discourage discrimination? Explain briefly.
Short Answer
A free market tends to discourage discrimination.
Chapter 14: Q. 30 (page 351)
Will a free market tend to encourage or discourage discrimination? Explain briefly.
A free market tends to discourage discrimination.
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Get started for freeWhat is a perfectly competitive labor market?
How would you expect immigration by primarily low-skill workers to affect American low-skilled workers?
What is the marginal cost of labor for a firm that operates in a competitive labor market? How does this compare with the MCL for a monopsony?
Table 14.11 shows levels of employment (Labor), the marginal product at each of those levels, and a monopoly’s marginal revenue.
Labor | Marginal product of labor | Price of the product |
1 | 10 | \(10 |
2 | 8 | \)7 |
3 | 7 | \(5 |
4 | 5 | \)4 |
5 | 3 | \(2 |
6 | 1 | \)1 |
a. What is the monopoly’s marginal revenue product at each level of employment?
b. If the monopoly operates in a perfectly competitive labor market where the going market wage is $20, what is the firm’s profit maximizing level of employment?
What is the long-term trend in American union membership?
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