平狄克微观经济学第六版第十四章课后答案.docx

平狄克微观经济学第六版第十四章课后答案.docx

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平狄克微观经济学第六版第十四章课后答案

平狄克微观经济学第六版第十四章课后答案

maximizationproblemwherethetwogoodsareleisureandincome.Incomecanbethoughtofastheconsumptionofgoodsotherthanleisure,inthatmoreincomebuysmoregoods.Youcanalsoimplicitlyassumethatthepriceofothergoodsis$1andthepriceofleisureisthewage.Thesupplyoflaborcurveisderivedbychangingthewageandfindingthenewlevelofhoursworked.Anindividual’ssupplycurveoflaborisbackwardbendingonlywhentheincomeeffectdominatesthesubstitutioneffectandleisureisanormalgood.ShowtypicalsupplycurvesforeachgroupinTable.Foranexperimentalstudyofthelabor-leisuretrade-offseeBattalio,Green,andKagel,“Income-LeisureTradeoffofAnimalWorkers,”AmericanEconomicReview（September1981）.

Sectionbringstogetherlabordemandandsupplyforbothcompetitiveandmonopolisticproductmarkets.AlthougheconomicrentwaspresentedinChapter8,itisreintroducedwithmoredetailhere.InSection,carefullyexplainwhythemarginalexpenditurecurveisabovetheaverageexpenditurecurveforamonopsonist（seeFigure.Youcandiscusshowamonopsonistwouldpricediscriminate,.,payadifferentwageratetoeachemployee.Withperfectpricediscrimination,themarginalrevenueexpenditurecurvewouldcoincidewiththeaverageexpenditurecurve.Althoughmonopsonyexistsinsomemarkets,theexerciseofmonopsonypowerisrarebecauseoffactormobility.However,theemploymentofathletesbytheownersofprofessionalteamsprovidesagoodexample（seeExample“MonopsonyPowerintheMarketforBaseballPlayers”）.Onthissametopic,seeSommersandQuinton,“PayandPerformanceinMajorLeagueBaseball:

TheCaseoftheFirstFamilyofFreeAgents,”JournalofHumanResources（Summer1982）.Sectiondiscussesthecaseofunionstoexploremonopolypoweronthepartoftheselleroftheinput.

REVIEWQUESTIONS

1.Whyisafirm’sdemandforlaborcurvemoreinelasticwhenthefirmhasmonopolypowerintheoutputmarketthanwhenthefirmisproducingcompetitively

Thefirm’sdemandcurveforlaborisdeterminedbytheincrementalrevenuefromhiringanadditionalunitoflaborknownasthemarginalrevenueproductoflabor:

MRPL=（MPL）（MR）,theadditionaloutput（“product”）thatthelastworkerproduced,timestheadditionalrevenueearnedbysellingthatoutput.Inacompetitiveindustry,themarginalrevenuecurveisperfectlyelasticandequaltoprice.Foramonopolist,marginalrevenueisdownwardsloping.Asmorelaborishiredandmoreoutputisproduced,themonopolistwillchargealowerpriceandmarginalrevenuewilldiminish.Allelsethesame,marginalrevenueproductwillbesmallerforthemonopolist.Thisimpliesthatthemarginalrevenueproductforthemonopolistismoreinelasticthanforthecompetitivefirm.

2.Whymightalaborsupplycurvebebackwardbending

Abackward-bendingsupplycurveforlabormayoccurwhentheincomeeffectofanincreaseinthewageratedominatesthesubstitutioneffect.Laborsupplydecisionsaremadebyindividualschoosingthemostsatisfyingcombinationofworkandother（leisure）activities.Withalargerincome,theindividualcanaffordtoworkfewerhours:

theincomeeffect.Asthewagerateincreases,thevalueofleisuretime（theopportunitycostofleisure）increases,thusinducingtheindividualtoworklongerhours:

thesubstitutioneffect.Becausethetwoeffectsworkinoppositedirections,theshapeofanindividual’slaborsupplycurvedependsontheindividual’spreferencesforincome,consumption,andleisure.

3.Howisacomputercompany’sdemandforcomputerprogrammersaderiveddemand

Acomputercompany’sdemandforinputs,includingprogrammers,dependsonhowmanycomputersitsells.Thefirm’sdemandforprogramminglabordependson（isderivedfrom）thedemanditfacesinitsmarketforcomputers.Asdemandforcomputersshifts,thedemandforprogrammersshifts.

4.Comparethehiringchoicesofamonopsonisticandacompetitiveemployerofworkers.Whichwillhiremoreworkers,andwhichwillpaythehigherwagesExplain.

Sincethedecisiontohireanotherworkermeansthemonopsonistmustpayahigherwageforallworkers,andnotjustthelastworkerhired,itsmarginalexpenditurecurveliesabovetheinputsupplycurve（theaverageexpenditurecurve）.Themonopsonist’sprofit-maximizinginputdemand,wherethemarginalexpenditurecurveintersectsthemarginalrevenueproductcurve,willbelessthanthecompetitor’sprofit-maximizinginputchoice,wheretheaverageexpenditurecurveintersectsthedemandcurve.Themonopsonisthireslesslabor,andthewagepaidwillbelessthaninacompetitivemarket.

5.Rockmusicianssometimesearnover$1millionperyear.Canyouexplainsuchlargeincomesintermsofeconomicrent

Economicrentisthedifferencebetweentheactualpaymenttothefactorofproductionandtheminimumamountthatthefactoriswillingtoaccept.Inthiscase,youmightassumethattherearealimitednumberoftop-qualityrockmusicianswhowillcontinuetoplayrockmusicnomatterwhattheyarepaid.Thisresultsinaperfectlyinelasticsupplycurve,orsomethingclosetoit.Giventhehighdemandforrockmusic,thewagewillbeveryhighandtherewillbealotofeconomicrent.Iftherewasalargersupplyoftop-qualityrockmusicians,oramoreelasticsupply,thentheeconomicrentwouldbesmaller.

6.Whathappenstothedemandforoneinputwhentheuseofacomplementaryinputincreases

Ifthedemandforthecomplementaryinputincreases,thedemandforthegiveninputwillincreaseaswell.Whendemandforthecomplementaryinputincreases,thereisanincreaseinthequantityhiredandpossiblythepricepaid.BothofthesechangeswillincreasetheMRPofthegiveninput,andhencewillincreasethequantityhiredandpossiblythepricepaid.Whetherthepricesoftheinputsincreasesdependsonthedegreeofmonopsonypoweronthepartofthefirm.

7.Foramonopsonist,whatistherelationshipbetweenthesupplyofaninputandthemarginalexpenditureonit

Thedecisiontoincreaseemploymentmeansthemonopsonistmustpayallunitsthehigherprice,andnotjustthelastunithired.Therefore,itsmarginalexpenditurecurveliesabovetheinputsupply

curve（theaverageexpenditurecurve）.Hiringmorelaborwillincreasethemarginalexpenditure,whichwillincreasetheaverageexpenditure.Iftheaverageexpenditureisincreasing,thenthemarginalexpendituremustbegreaterthantheaverageexpenditure.

8.CurrentlytheNationalFootballLeaguehasasystemfordraftingcollegeplayersbywhicheachplayerispickedbyonlyoneteam.Theplayermustsignwiththatteamornotplayintheleague.Whatwouldhappentothewagesofnewlydraftedandmoreexperiencedfootballplayersifthedraftsystemwererepealed,andallteamscouldcompeteforcollegeplayers

TheNationalFootballLeaguedraftandreserveclause（aprimaryissueinthe1987-1988season’sstrike）createsamonopsonistcartelamongtheownersofNFLteams.Ifthedraftsystemwererepealed,competitionamongteamswouldincreasewagesoffootballplayerstothepointwherethemarginalrevenueproductofeachplayerwouldbeequaltotheplayer’swage.

9.Thegovernmentwantstoencourageindividualsonwelfaretobecomeemployed.Itisconsideringtwopossibleincentiveprogramsforfirms.

A.Givethefirm$2perhourforeveryindividualonwelfarewhoishired.

B.Giveeachfirmthathiresoneormorewelfareworkersapaymentof$1000peryear,irrespectiveofthenumberofhires.

Towhatextentiseachoftheseprogramslikelytobeeffectiveatincreasingtheemploymentopportunitiesforwelfareworkers

Firmswillhireadditionallaboraslongastheextrabenefitisgreaterthantheextracostofhiringtheworker,oruntilMRPL=w.OptionAwouldbeeffectivebecauseifthefirmreceives$2perhourforeverywelfareworkerhiredthentheeffectivewagepaid,w,willfallandthefirmwillfinditoptimaltohiremorelaboruntilthebenefits（MRPL）againequalthecosts（w）atthemargin.OptionBwouldbeeffectiveatincreasingemploymentopportunitiesalsointhatifthefirmhiresanindividualwhohasbeenonwelfaretheywillthenreceive$1000.However,planBisnotnecessarilyaseffectiveasplanAgiventhefirmonlyreceivesonelumpsumpaymentregardlessofthenumberofwelfareworkershired.Inthiscasethefirmonlyhasanincentivetohiretheonewelfareworker,thoughtheymayofcoursechoosetohiremorethanonewelfareworker.

10.Asmallspecialtycookiecompany,whoseonlyvariableinputislabor,findsthattheaverageworkercanproduce50cookiesperday,thecostoftheaverageworkeris$64perday,andthepriceofacookieis$1.IsthecookiecompanymaximizingitsprofitExplain.

Themarginalproductoflaboris50（cookiesperday）andthepricepercookieis1（$percookie）sothemarginalrevenueproductis$50/day.Sincethisislessthanthewageof$64perdaythecookiecompanyisnotmaximizingprofit.Theyareemployingtoomuchlaborsincethecostoflaborisgreaterthanthebenefitoflaboratthemargin,andarethereforeproducingtoomanycookies.

11.Afirmusesbothlaborandmachinesinproduction.Explainwhyanincreaseintheaveragewageratecausesbothamovementalongthelabordemandcurveandashiftofthecurve.

Anincreaseinthewageratecausesanupwardmovementalongthelabordemandcurve.Foranygivenmarginalrevenueproductcurve,thefirmwillfindthattheywanttohirefewerworkerswhenthewageincreases（anupwardmovement）.However,whenthewageincreasesthemarginalcostwillincreasewhichwillreducedesiredoutput.Whenoutputfalls,thefirmwillnotneedasmanymachinesandthe