平狄克微觀經(jīng)濟學(xué)第六版第十四章課后答案

千里之行，始于足下。第2頁/共2頁精品文檔推薦平狄克微觀經(jīng)濟學(xué)第六版第十四章課后答案CHAPTER14

MARKETSFORFACTORINPUTS

TEACHINGNOTES

Thefollowingtwochaptersexaminethemarketsforlaborandcapital.Althoughthe

discussioninthischapterisgeneral,mostoftheexamplesrefertolaborastheonlyvariableinputtoproduction,withtheexceptionofExample,whichdiscusses“TheDemandforJetFuel”byairlines.Labordemandandsupplyarediscussedinthefirstsection,andthecompetitivefactormarketequilibriumandeconomicrentarediscussedinthesecondsection.Sectionexploresthefactormarketstructureforthecasewherethebuyerhasmonopsonypower,andsectionexploresthecaseofmonopolypoweronthepartofthesellerofthefactor.

AnunderstandingofthischapterreliesonconceptsfromChapters4through8and10.

IfyouhavejustcoveredChapters11-13,youmightbeginbyreviewingmarginalproduct,marginalrevenue,andcostminimization.Youshouldthendiscussmarginalrevenueproductandtheprofit-maximizingconditionMRP=w.Explainwhyweareonlyinterestedintheportionof

theMPcurvebelowtheaverageproductcurve(thedownward-slopingportion).Thederivationofthefirm'sdemandcurveforlaborisstraightforwardwhenlaboristheonlyfactor,butbecomesmorecomplicatedwhenthereareseveralvariableinputs.Inparticular,youmightexplainwhytheMRPcurveshiftsasthefirmsubstitutesoneinputforanotherinproduction

inresponsetoapricechangebynotingthattheMRPcurveisdrawnforafixedlevelofthe

othervariableinput.

Whenpresentingthemarketlabordemandcurve,explainthatsincetheinputpriceschangeasmoreinputsaredemanded,themarketdemandcurveisnotsimplythesummationofindividualdemandcurves.Youcanextendthepresentationofpriceelasticityofinputdemand(seeExamplebydiscussingtheconditionsleadingtopricesensitivity.Elasticityisgreater(1)whentheelasticityofdemandfortheproductishigher,(2)whenitiseasytosubstituteoneinputforanother,and(3)whentheelasticityofsupplyishigherforotherinputs.

Elasticityofsupply,whichwasdiscussedinChapter2,isreintroducedinExample.Youshouldalsodistinguishbetweenshort-runandlong-runelasticity(seeFigure.

Ifyouhavealreadycoveredsubstitutionandincomeeffects,thestudentswillbeready

forthederivationofthebackward-bendingsupplycurveforlabor.AlthoughFigureisa

straightforwardapplicationofthesetools,studentsareoftenconfusedbytheplottingof

incomeagainstleisure.Pointoutthatthisisjustanothertypeofutilitymaximization

problemwherethetwogoodsareleisureandincome.Incomecanbethoughtofasthe

consumptionofgoodsotherthanleisure,inthatmoreincomebuysmoregoods.Youcanalsoimplicitlyassumethatthepriceofothergoodsis$1andthepriceofleisureisthewage.

Thesupplyoflaborcurveisderivedbychangingthewageandfindingthenewlevelofhours

worked.Anindividual'ssupplycurveoflaborisbackwardbendingonlywhentheincomeeffectdominatesthesubstitutioneffectandleisureisanormalgood.ShowtypicalsupplycurvesforeachgroupinTable.Foranexperimentalstudyofthelabor-leisuretrade-offseeBattalio,

Green,andKagel,“Income-LeisureTradeoffofAnimalWokers,”

AmericanEconomicReview

(September1981).

Sectionbringstogetherlabordemandandsupplyforbothcompetitiveandmonopolistic

productmarkets.AlthougheconomicrentwaspresentedinChapter8,itisreintroducedwith

moredetailhere.InSection,carefullyexplainwhythemarginalexpenditurecurveisabove

theaverageexpenditurecurveforamonopsonist(seeFigure.Youcandiscusshowamonopsonist

wouldpricediscriminate,.,payadifferentwageratetoeachemployee.Withperfectprice

discrimination,themarginalrevenueexpenditurecurvewouldcoincidewiththeaverageexpenditurecurve.Althoughmonopsonyexistsinsomemarkets,theexerciseofmonopsonypower

However,theemploymentofathletesbytheownersof

professionalteamsprovidesagoodexample(seeExample

discussesthecaseofunionstoexploremonopolypoweronthepartoftheselleroftheinput.

israrebecauseoffactormobility.MonopsonyPowerintheMarketfor

BaseballPlayers”).

Onthissametopic,seeSommersandQuinton,PayandPerformaneeinMajorLeagueBaseball:

TheCaseoftheFirstFamilyofFreeAgents,JournalofHumanResources(Summer1982).Section

REVIEWQUESTIONS

1.Whyisafirm'sdemandforlaborcurvemoreinelasticwhenthefirmhasintheoutputmarket

thanwhenthefirmisproducingcompetitively

Thefirm'sdemandcurveforlaborisdeterminedbytheincrementalrevenuefrom

hiringanadditionalunitoflaborknownasthemarginalrevenueproductoflabor:MRp=(MP)(MRtheadditionaloutput(

“product”)thatthelastworkerproduced,timestheadditionalrevenueearnedbysellingthatoutput.Ina

competitiveindustry,themarginalrevenuecurveisperfectlyelasticandequal

toprice.Foramonopolist,marginalrevenueisdownwardsloping.Asmore

laborishiredandmoreoutputisproduced,themonopolistwillchargealower

productwillbesmallerforthemonopolist.

revenueproductforthemonopolistismoreinelasticfirm.2.Whymightalaborsupplycurvebebackwardbending

Abackward-bendingsupplycurveforlabormayoccurwhentheincomeeffectofan

increaseinthewageratedominatesthesubstitutioneffect.Laborsupply

decisionsaremadebyindividualschoosingthemostsatisfyingcombinationof

workandother(leisure)activities.Withalargerincome,theindividualcanaffordtoworkfewerhours:theincomeeffect.Asthewagerateincreases,thevalueofleisuretime(theopportunitycostofleisure)increases,thusinducingtheindividualtoworklongerhours:thesubstitutioneffect.Becausethetwo

effectsworkinoppositedirections,theshapeofanindividua

l'slaborsupplycurvedependsontheindividual'spreferences

forincome,consumption,and

leisure.

3.Howisacomputercompany'sdemandforcomputerprogrammersaderiveddemand

Acomputercompanysdemandforinputs,includingprogrammers,dependsonhowmanycomputersitsells.Thefirm'sdemandforprogramminglabordependson(isderivedfrom)thedemanditfacesinitsmarketforcomputers.Asdemandforcomputersshifts,thedemandforprogrammersshifts.monopolypower

priceandmarginalrevenuewilldiminish.

Allelsethesame,marginalrevenue

Thisimpliesthatthemarginalthanforthecompetitive

4.Comparethehiringchoicesofamonopsonisticandacompetitiveemployerofworkers.

Whichwillhiremoreworkers,andwhichwillpaythehigherwagesExplain.Sincethedecisiontohireanotherworkermeansthemonopsonistmustpaya

higherwageforallworkers,

andnotjustthelastworkerhired,itsmarginalexpenditure

curveliesabovetheinputsupplycurve(theaverageexpenditurecurve).Themonopsonist'sprofit-maximizinginputdemand,wherethemarginal

expenditurecurveintersectsthemarginalrevenueproductcurve,willbeless

thanthecompetitor'sprofit-maximizinginput

choice,wheretheaverageexpenditurecurveintersectsthedemandcurve.Themonopsonisthireslesslabor,

andthewagepaidwillbelessthaninacompetitivemarket.

5.Rockmusicianssometimesearnover$1millionperyear.Canyouexplainsuchlargeincomesintermsofeconomicrent

Economicrentisthedifferencebetweentheactualpaymenttothefactorofproductionandtheminimum

amountthatthefactoriswillingtoaccept.Inthis

case,youmightassumethattherearealimitednumberoftop-qualityrockmusicianswhowillcontinuetoplayrockmusicnomatterwhattheyarepaid.Thisresultsinaperfectlyinelasticsupplycurve,orsomethingclosetoit.Giventhehighdemandforrockmusic,thewagewillbeveryhighandtherewill

bealotofeconomicrent.Iftherewasalargersupplyoftop-qualityrockmusicians,oramoreelasticsupply,thentheeconomicrentwouldbesmaller.

6.Whathappenstothedemandforoneinputwhentheuseofacomplementaryinputincreases

Ifthedemandforthecomplementaryinputincreases,thedemandforthegiveninputwillincreaseaswell.

Whendemandforthecomplementaryinputincreases,

thereisanincreaseinthequantityhiredandpossiblythepricepaid.Bothof

MRPofthegiveninput,andhencewillincrease

thequantityhiredandpossiblythepricepaid.marginalexpenditureonit

Thedecisiontoincreaseemploymentmeansthemonopsonistmustpayhigherprice,andnotjustthelastunithired.expenditurecurveliesabovetheinputsupplycurve(theaverageexpenditurecurve).Hiring

morelaborwillincreasethemarginalexpenditure,whichwillincreasetheaverageexpenditure.Iftheaverageexpenditureisincreasing,thenthemarginalexpendituremustbegreaterthantheaverageexpenditure.

8.CurrentlytheNationalFootballLeaguehasasystemfordraftingcollegeplayersbywhicheachplayerispickedbythesechangeswillincreasetheWhetherthepricesofthe

7.

inputsincreases

firm.

Foramonopsonist,dependsonthedegreeofwhatistherelationshipmonopsonypoweronthepartbetweenthesupplyoftheofaninputandthe

allunitsthe

Therefore,itsmarginal

onlyoneteam.Theplayermustsignwiththatteamornot

playintheleague.Whatwouldhappentothewagesofnewlydraftedandmoreexperiencedfootballplayersifthedraftsystemwererepealed,andallteamscouldcompeteforcollegeplayers

TheNationalFootballLeaguedraftandreserveclause(aprimaryissueinthe

1987-1988season'sstrike)createsamonopsonistcartelamongtheownersofNFL

teams.Ifthedraftsystemwererepealed,competitionamongteamswouldincreasewagesoffootballplayerstothepointwherethemarginalrevenueproductofeachplayerwouldbeequaltotheplayer'swage.

9.ThegoverXXXentwantstoencourageindividualsonwelfaretobecomeemployed.Itisconsideringtwopossibleincentiveprogramsforfirms.

A.Givethefirm$2perhourforeveryindividualonwelfarewhoishired.

B.Giveeachfirmthathiresoneormorewelfareworkersapaymentof$1000peryear,irrespectiveofthe

numberofhires.

Towhatextentiseachoftheseprogramslikelytobeeffectiveatincreasingtheemploymentopportunitiesforwelfareworkers

Firmswillhireadditionallaboraslongastheextrabenefitisgreaterthan

theextracostofhiringtheworker,oruntilMRPL=w.OptionAwouldbeeffectivebecauseifthefirmreceives$2perhourforeverywelfareworkerhiredthentheeffectivewagepaid,w,willfallandthefirmwillfinditoptimaltohiremorelaboruntilthebenefits(MRPL)againequalthecosts(w)

atthemargin.OptionBwouldbeeffectiveatincreasingemployment

opportunitiesalsointhatifthefirmhiresanindividualwhohasbeenonwelfaretheywillthenreceive$1000.

However,planBisnotnecessarilyaseffectiveasplanAgiventhefirmonlyreceivesonelumpsumpayment

regardlessofthenumberofwelfareworkershired.Inthiscasethefirmonly

hasanincentivetohiretheonewelfareworker,thoughtheymayofcoursechoosetohiremorethanonewelfareworker.

10.Asmallspecialtycookiecompany,whoseonlyvariableinputislabor,findsthatthe

averageworkercanproduce50cookiesperday,thecostoftheaverageworkeris$64per

day,andthepriceofacookieis$1.IsthecookiecompanymaximizingitsprofitExplain.

Themarginalproductoflaboris50(cookiesperda