Exam 14: Imperfectly Competitive Markets for Factors of Production

Use the following to answer question(s): Minimum Wage and Monopsony -(Exhibit: Minimum Wage and Monopsony) In the absence of a minimum wage, the monopsony firm in the exhibit would maximize profits by hiring _______ units of labor per period.

Use the following to answer question 63-70. Exhibit: Monopoly and Monopsony -(Exhibit: Monopoly and Monopsony) In monopoly, the equilibrium quantity of output will be where ________ , and in monopsony, equilibrium quantity of input will be where ________.

A union composed of workers in the same industry is best termed a(n):

Laws that prohibit union-shop rules are called:

Use the following to answer question(s): Wage-Employment Model in Perfectly Competitive and Monopsony Factor Markets -(Exhibit: Wage-Employment Model in Perfectly Competitive and Monopsony Factor Markets) If this diagram portrayed a perfectly competitive factor market, the equilibrium-employment level would be:

Unions only represent skilled workers.

Unions have often tended to be vigorous _______ of _______.

The wage in a bilateral monopoly will be closer to the monopolistic or monopsonistic wage, depending on the relative bargaining strength of the buyer and seller.

The perfectly competitive firm's demand curve for labor is:

The demand for labor in a competitive labor market is found by averaging the MRP curves of the individual firms.

The Case in Point on Boeing, analyzed the company's decision to locate a new plant in:

In a perfectly competitive factor market, the supply of factor to an individual firm is:

In a perfectly competitive factor market, a firm faces a(n):

Right-to-work laws:

Given monopsony in a factor market:

Suppose that a monopsonist increases the number of workers hired from 10 to 11.If the market wage increases from $10 per worker to $11 per worker, the marginal factor cost for the eleventh worker is:

The price of a factor supplied in a monopolistic factor market, as compared to a situation where the monopoly supplier is broken up into a large number of firms selling the factor in a perfectly competitive factor market:

Unions may attempt to raise wages by:

In monopsony, if the wage is determined for the quantity of factor input where MRP = MFC, a minimum wage established above the monopsony wage, but below where the competitive wage would be, will:

Monopoly is a _______ in the _______ market, and monopsony is a _______ in the ________market.