微观经济学第十四章习题
微观经济学第十四章竞争市场上的企业
第十四章竞争市场上的企业问题与应用1．许多小船用一种从石油中提炼出来的玻璃纤维制造。
假设石油价格上升。
A．用图形说明单个造船企业的成本曲线和市场供给曲线发生了什么变动.答：石油价格上升，使个别造船企业的边际成本、平均总成本、平均可变成本均上升. 厂商成本上升,供给减少,供给曲线从S 1平移到S2，市场价格上升,销售量下降.(a)成本曲线（b)市场供给曲线图14－7 个别造船企业的成本曲线和市场供给曲线B．短期中造船者的利润会发生什么变动？长期中造船者的数量会发生什么变动？? 答：短期中造船者的利润会下降。
因为价格有粘性,短期内,市场价格不会有太大变动,但厂商的生产成本上升了。
长期中造船者的数量会下降，因为市场规模缩小了。
2．你到镇里最好的餐馆,点了一道4400美元的龙虾。
吃了一半龙虾，你就感到非常饱了.你的女友想劝你吃完，因为你无法把它拿回家，而且也因为“你已经为此花了钱"。
你应该吃完吗？把你的答案与本章的内容联系起来.答：我不应该吃完.因为龙虾已经买下了，买龙虾所付的钱成为沉没成本。
短期均衡中，沉没成本不予考虑。
此时,我只衡量吃龙虾的边际成本与边际收益就可以了。
我感到饱了,就是我的收益已经最大化。
如果再吃,就会产生不适感，边际成本大于边际收益，利润会为负。
这就像竞争厂商的短期均衡一样，只要MR＝MC，厂商就不再增加产量,因为已经达到利润最大化。
3．鲍伯的草坪剪草中心是追求利润最大化的竞争企业。
鲍伯每剪一块草坪赚27美元。
他每天的总成本是280美元，其中30美元是固定成本。
他每天剪10块草坪.你对鲍伯的短期停止营业决策和长期退出决策有何见解？答：对鲍伯的剪草中心来说,P＝27 美元，A TC＝280／10＝28 美元，AVC＝（280－30）／10＝25 美元.当P〈A VC,即P〈25 美元时,鲍伯应该短期停止营业.因为在短期中，价格没有弥补平均可变成本，企业停止生产,状况会变好一些.当P<ATC,即P<28 美元时，鲍伯应该长期退出剪草坪市场。
平狄克《微观经济学》（第7版）习题详解（第14章-投入要素市场）
平狄克《微观经济学》（第7版）习题详解（第14章-投⼊要素市场）平狄克《微观经济学》（第7版）第14章投⼊要素市场课后复习题详解跨考⽹独家整理最全经济学考研真题，经济学考研课后习题解析资料库，您可以在这⾥查阅历年经济学考研真题，经济学考研课后习题，经济学考研参考书等内容，更有跨考考研历年辅导的经济学学哥学姐的经济学考研经验，从前辈中获得的经验对初学者来说是宝贵的财富，这或许能帮你少⾛弯路，躲开⼀些陷阱。
以下内容为跨考⽹独家整理，如您还需更多考研资料，可选择经济学⼀对⼀在线咨询进⾏咨询。
1．为什么当⼚商在产品市场具有垄断势⼒时，它对劳动⼒的需求曲线⽐⼚商是竞争性⽣产时弹性⼩？答：⼚商在产品市场具有垄断势⼒时，它对劳动⼒的需求曲线⽐⼚商是竞争性⽣产时弹性⼩，其原因在于：（1）⼚商对劳动的需求曲线是由劳动的边际收⼊产出L MRP 决定的。
L MRP 指在其他⽣产要素的投⼊量固定不变时追加⼀单位的劳动⼒要素投⼊所带来的收益。
它等于边际物质产品（L MP ）与边际收益（MR ）的乘积，即·L L MRP MP MR =。
（2）在完全竞争市场上，边际收益曲线具有完全弹性并且等于价格P ，故·L L MRP MP P =。
在垄断市场上，边际收益曲线是向下倾斜的，弹性较⼩。
通过边际收⼊产出L MRP 的表达式可以看出，当⼚商在产出品市场具有垄断势⼒时，对劳动的需求曲线⽐⼚商是竞争性⽣产时弹性⼩。
2．为什么劳动供给曲线可能是向后弯曲的？答：劳动供给曲线是⼈们提供的劳动和对劳动所⽀付的报酬之间关系的表现形式。
假设劳动的供给只取决于⼯资，则劳动供给曲线可⽤图14-4表⽰。
此图是向后弯曲的劳动供给曲线。
这是因为，当⼯资较低时，随着⼯资的上升，消费者为较⾼的⼯资所吸引，将减少闲暇，增加劳动供给量。
在这个阶段，劳动供给曲线向右上⽅倾斜。
但是，⼯资上涨对劳动供给的吸引是有限的。
当⼯资涨到⾜够⾼（例如0W ）时，消费者的劳动供给量达到最⼤，此时，如果继续增加⼯资，劳动供给量不会继续增加，反⽽会减少，如当⼯资从0W 提⾼到1W 时，劳动供给则从0L 减少到1L 。
微观经济学第十四章消费者剩余
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微观经济学(山东大学)智慧树知到答案章节测试2023年
第一章测试1.由于人们会对激励做出反应，如果会计师的平均薪水增加50％，而教师的平均薪水增加20％，我们可以预期（）A:上大学的学生少了B:学生将从会计专业转向教育专业C:学生将从教育专业转向会计专业答案:C2.下列哪一项不是去度假的机会成本的一部分? （）A:你用于食物的钱B:如果你留在家里并工作可以赚到的钱C:你用于飞机票的钱D:你看百老汇表演所花的钱答案:A3.高而持久的通货膨胀的原因是（）A:欧佩克使石油价格上升得太高了B:工会使工资增加得太多了C:政府增加的货币量太多了D:管制使生产成本增加得太多了答案:C4.可以提高生产率的方法是（）A:限制与国外的贸易B:提高工会会员的工资C:改善工人的教育D:提高最低工资答案:C5.下列哪一种情况涉及到权衡取舍? （）A:上大学B:买一辆新汽车C:星期天下午看一场足球比赛答案:ABC第二章测试1.如果一种经济在其生产可能性边界上运行，它要多生产另一种物品就必须少生产一种物品。
A:错B:对答案:B2.生产可能性边界上的点是（）A: 有效率的B: 无效率的C: 不能达到的D: 规范的答案:A3.以下哪一项不会使一国的生产可能性曲线向外移动? （）A: 失业减少B: 劳动力增加C: 资本存量增加D: 技术进步答案:A4.以下哪一项描述了经济增长（）A: 生产可能性边界向外移动B: 从该曲线内向曲线移动C: 沿着生产可能性边界向资本品移动D: 生产可能性边界向内移动答案:A5.以下哪一项表述是规范表述? （）A: 发行了太多货币就引起通货膨胀B: 失业率应该降低C: 大量政府赤字使经济增长更慢D: 如果工资高，人们就努力工作答案:B第三章测试1.即使一国在所有物品上都有绝对优势。
两国也能从贸易中得到好处。
A:对B:错答案:A2.下表表示澳大利亚和韩国一个工人每月可以生产的产量，根据该表答题：下列哪一种关于绝对优势的表述是正确的A:韩国在粮食和电器的生产上都有绝对优势。
蔡继明《微观经济学(第2版)》课后习题详解(第14章 公共选择)
蔡继明《微观经济学（第2版）第14章公共选择跨考网独家整理最全经济学考研真题，经济学考研课后习题解析资料库，您可以在这里查阅历年经济学考研真题，经济学考研课后习题，经济学考研参考书等内容，更有跨考考研历年辅导的经济学学哥学姐的经济学考研经验，从前辈中获得的经验对初学者来说是宝贵的财富，这或许能帮你少走弯路，躲开一些陷阱。
以下内容为跨考网独家整理，如您还需更多考研资料，可选择经济学一对一在线咨询进行咨询。
1．解释下列基本概念：私人选择、公共选择、投票交易、寻租。
答：略。
2．说明阿罗定理及其含义。
答：阿罗的不可能性定理是指试图找出一套规则（或程序），以从一定的社会状况下的个人选择顺序中推导出符合某种理性条件的社会选择顺序，一般是办不到的。
阿罗不可能定理包含两项重要假设：每个人的偏好是可以排序的；每个人的偏好次序是传递的。
阿罗首先定义了阿罗首先假定了从表面上看社会偏好应该服从的六个无可非议的公理：①所有的社会状态一定可以排序；②社会排序一定是可传递的；③排序与个人偏好正相关；④如果出现新的可行社会状态，不应该影响起初的社会状态排序；⑤不存在独裁，或者说个人不能把自己的偏好强加于社会；⑥没有与个人偏好无关的排序。
阿罗证明，尽管上述6公理从表面上看都是合理的，但并不存在同时服从上述6个条件的一般社会关系，即：社会偏好并不总是同时满足上述6公理。
此即阿罗定理。
阿罗证明了不存在一个选择规则或选择程序能够同时满足上面六个条件，这表明由个人选择合乎逻辑地转化为社会选择的过程包含巨大的困难。
根据阿罗不可能性定理，在非独裁的情况下，不可能存在有适用于所有偏好类型的社会福利函数。
同时，它还意味着不能从不同个人的偏好中合理地形成社会偏好。
换句话说，一般意义上的社会福利函数并不存在，这表明，西方经济学没有能彻底的解决资源配置问题。
3．说明中间投票人定理及其带来的问题。
答：中间投票人定理是指如果在一个多数决策的模型中，个人偏好都是单峰的，则反映中间投票人意愿的那种政策会最终获胜，因为选择该政策会使一个团体的福利损失最小。
微观经济学第十四章 习题答案
A.右移10亿美元；B.左移10亿美元；C.右移支出乘数乘以10亿美元；D.左移支出乘数乘以10亿美元。
解答：C2.如果净税收增加10亿美元，会使IS()。
A.右移税收乘数乘以10亿美元；B.左移税收乘数乘以10亿美元；C.右移支出乘数乘以10亿美元；D.左移支出乘数乘以10亿美元。
解答：B3.假定货币供给量和价格水平不变，货币需求为收入和利率的函数，则收入增加时()。
A.货币需求增加，利率上升；B.货币需求增加，利率下降；C.货币需求减少，利率上升；D.货币需求减少，利率下降。
解答：A4.假定货币需求为L＝ky－hr，货币供给增加10亿美元而其他条件不变，则会使LM()。
A.右移10亿美元；B.右移k乘以10亿美元；C.右移10亿美元除以k(即10÷k)；D.右移k除以10亿美元(即k÷10)。
解答：C5.利率和收入的组合点出现在IS曲线右上方、LM曲线左上方的区域中，则表示()。
A.投资小于储蓄且货币需求小于货币供给；B.投资小于储蓄且货币需求大于货币供给；C.投资大于储蓄且货币需求小于货币供给；D.投资大于储蓄且货币需求大于货币供给。
解答：A6.怎样理解IS—LM模型是凯恩斯主义宏观经济学的核心？解答：凯恩斯理论的核心是有效需求原理，认为国民收入决定于有效需求，而有效需求原理的支柱又是边际消费倾向递减、资本边际效率递减以及心理上的流动偏好这三个心理规律的作用。
这三个心理规律涉及四个变量：边际消费倾向、资本边际效率、货币需求和货币供给。
在这里，凯恩斯通过利率把货币经济和实物经济联系了起来，打破了新古典学派把实物经济和货币经济分开的两分法，认为货币不是中性的，货币市场上的均衡利率会影响投资和收入，而产品市场上的均衡收入又会影响货币需求和利率，这就是产品市场和货币市场的相互联系和作用。
但凯恩斯本人并没有用一种模型把上述四个变量联系在一起。
汉森、希克较为完善的表述。
不仅如此，凯恩斯主义的经济政策即财政政策和货币政策的分析，也是围绕IS—LM模型而展开的，因此可以说，IS—LM模型是凯恩斯主义宏观经济学的核心。
曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详解(第14章--竞争市场上的企业)
曼昆《经济学原理（微观经济学分册）》（第6版）第14章竞争市场上的企业课后习题详解跨考网独家整理最全经济学考研真题，经济学考研课后习题解析资料库，您可以在这里查阅历年经济学考研真题，经济学考研课后习题，经济学考研参考书等内容，更有跨考考研历年辅导的经济学学哥学姐的经济学考研经验，从前辈中获得的经验对初学者来说是宝贵的财富，这或许能帮你少走弯路，躲开一些陷阱。
以下内容为跨考网独家整理，如您还需更多考研资料，可选择经济学一对一在线咨询进行咨询。
一、概念题1．竞争市场（competitive market）（山东大学2007研）答：竞争市场指有许多买者和卖者，以至于每一个人对市场价格的影响都微不足道的市场。
竞争市场一般指完全竞争市场。
完全竞争又称为纯粹竞争，是指不存在任何阻碍和干扰因素的市场情况，亦即没有任何垄断因素的市场结构。
完全竞争市场需要具备以下四个条件：①市场上有大量的买者和卖者；②市场上每一个厂商提供的商品都是同质的；③所有的资源具有完全的流动性；④信息是完全的。
2．平均收益（average revenue）答：平均收益指厂商在出售一定数量的产品时，平均出售每一单位的产品所获得的货币收入，即总收益除以销售量。
在不同的市场结构中，厂商的平均收益具有不同的变化规律。
在完全竞争市场中，由于单个厂商可以在市场价格下出售任何数量的商品，厂商面临一条水平的需求线（即平均收益曲线）。
这时，当市场达到长期均衡时，厂商的平均收益与平均成本相等，所以厂商的利润为零，厂商只能得到正常利润。
在非完全竞争市场上，厂商能够影响市场价格。
为了多销售一单位产品，它不仅要以比原来价格更低的价格出售这一产品，而且还必须降低原来所有产品的价格。
因此，厂商面临的需求曲线（即平均收益曲线）向右下方倾斜，表明厂商想要多销售产品，必须降低产品价格。
3．边际收益（marginal revenue）（西北大学2003研）答：边际收益又称“边际报酬”，指新增加一个单位的产品销售量所引起的总收益的增加量，这里的收益是指货币收益或销售收入。
(NEW)张元鹏《微观经济学》(中级教程)课后习题详解
目 录第一篇 微观经济学导论第一章 微观经济学是什么第二章 需求、供给与市场均衡第二篇 完全竞争环境下的微观经济运行第三章 消费者行为理论（Ⅰ）第四章 消费者行为理论（Ⅱ）第五章 生产者行为理论（Ⅰ）第六章 生产者行为理论（Ⅱ）第七章 竞争性市场分析：产品市场第八章 竞争性市场分析：要素市场第九章 一般均衡与福利经济学第三篇 不完全竞争环境下的微观经济运行第十章 完全垄断理论第十一章 垄断竞争理论第十二章 寡头市场第十三章 博弈论与厂商的策略性行为第十四章 不完全竞争下的要素价格理论第四篇 不确定下、信息与市场失灵第十五章 不确定性、风险与信息非对称第十六章 市场失灵、外部性与公共物品第一篇 微观经济学导论第一章 微观经济学是什么1判断题（1）任何不对其索取价格的物品都是自由取用物品。
（ ）【答案】×【解析】自由取用物品是指相对于人类的欲望来说，其数量是无限的，取用时不需要花费任何代价，其价格为零，如自然界中的空气、水等。
但是不对其索取价格并不代表都是自由取用物品，如得到免费馈赠的物品，对于被赠与人来说未被索取任何价格，但该物品仍是经济物品。
（2）稀缺物品一定有一个直接以货币支付的价格。
（ ）【答案】×【解析】稀缺物品是指相对于人类无限多样性的需要或欲望而言，其数量是有限的，取用时需要付出一定的代价，其机会成本大于零。
但不是所有的稀缺性都可以用货币来表示。
例如，随着工业的发展和环境污染，清洁的水和新鲜的空气逐渐变得稀缺，但难以用货币来衡量。
（3）如果你得到两张免费的奥运会参观券，它们可以看作是自由取用物。
（ ）【答案】×【解析】自由物品的免费取用是对于所有社会成员而言的，奥运会参观券对于其他人来说，仍需支付一定的价格，所以是稀缺物品。
（4）如果某种资源免费供应时社会成员所需要的多于现有的，那么，这种资源就是稀缺的。
（ ）【答案】√【解析】当某种资源免费供应社会成员所需要的多于现有的，便出现了资源的有限性与欲望的无限性的矛盾，从而这种资源是稀缺的。
微观经济学第十四章竞争市场上的企业
第十四章竞争市场上的企业问题与应用1．许多小船用一种从石油中提炼出来的玻璃纤维制造。
假设石油价格上升。
A．用图形说明单个造船企业的成本曲线和市场供给曲线发生了什么变动。
答：石油价格上升，使个别造船企业的边际成本、平均总成本、平均可变成本均上升。
厂商成本上升，供给减少，供给曲线从S 1平移到S2，市场价格上升，销售量下降。
（a）成本曲线（b）市场供给曲线图14－7 个别造船企业的成本曲线和市场供给曲线B．短期中造船者的利润会发生什么变动？长期中造船者的数量会发生什么变动??答:短期中造船者的利润会下降。
因为价格有粘性，短期内，市场价格不会有太大变动,但厂商的生产成本上升了。
长期中造船者的数量会下降，因为市场规模缩小了。
2．你到镇里最好的餐馆，点了一道4400美元的龙虾。
吃了一半龙虾，你就感到非常饱了。
你的女友想劝你吃完，因为你无法把它拿回家，而且也因为“你已经为此花了钱"。
你应该吃完吗？把你的答案与本章的内容联系起来。
答：我不应该吃完。
因为龙虾已经买下了,买龙虾所付的钱成为沉没成本.短期均衡中,沉没成本不予考虑。
此时，我只衡量吃龙虾的边际成本与边际收益就可以了。
我感到饱了,就是我的收益已经最大化.如果再吃，就会产生不适感，边际成本大于边际收益，利润会为负.这就像竞争厂商的短期均衡一样，只要MR＝MC，厂商就不再增加产量，因为已经达到利润最大化.3．鲍伯的草坪剪草中心是追求利润最大化的竞争企业。
鲍伯每剪一块草坪赚27美元。
他每天的总成本是280美元，其中30美元是固定成本。
他每天剪10块草坪.你对鲍伯的短期停止营业决策和长期退出决策有何见解?答：对鲍伯的剪草中心来说，P＝27 美元，ATC＝280／10＝28 美元，A VC＝（280－30）／10＝25 美元.当P<A VC，即P〈25 美元时，鲍伯应该短期停止营业。
因为在短期中，价格没有弥补平均可变成本，企业停止生产，状况会变好一些。
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平狄克微观经济学第六版课后答案***** 14***** FOR FACTOR INPUTSThe following two chapters examine the markets for labor and capital. Although the discussion in this chapter is general, most of the examples refer to labor as the only variable input to production, with the exception of Example 14.1, which discusses “The Demand for Jet Fuel” by airlines. Labor demand and supply are discussed in the first section, and the competitive factor market equilibrium and economic rent are discussed in the second section. Section 14.3 explores the factor market structure for the case where the buyer has monopsony power, and section 14.4 explores the case of monopoly power on the part of the seller of the factor.An understanding of this chapter relies on concepts from Chapters 4 through 8 and 10. If you have just covered Chapters 11-13, you might begin by reviewing marginal product, marginalrevenue, and cost minimization. You should then discuss marginal revenue product and the profit-maximizing condition MRPL = w. Explain why we are only interested in the portion of the MP curve below the average product curve (the downward-sloping portion). The derivation of the firm’s demand curve for labor is straightforward when labor is the only factor, but becomes more complicated when there are several variable inputs. In particular, you might explain why the MRPL curve shifts as the firm substitutes one input for another in production in response to a price change by noting that the MRPL curve is drawn for a fixed level of the other variable input.When presenting the market labor demand curve, explain that since the input prices change as more inputs are demanded, the market demand curve is not simply the summation of individual demand curves. You can extend the presentation of price elasticity of input demand (see Example 14.1) by discussing the conditions leading to price sensitivity. Elasticity is greater (1) when the elasticity of demand for the product is higher, (2) when it is easy to substitute one input for another, and (3) when the elasticity of supply is higher for other inputs. Elasticity of supply, which was discussed in Chapter 2, is reintroduced in Example 14.2.You should also distinguish between short-run and long-run elasticity (see Figure 14.6).If you have already covered substitution and income effects, the students will be ready for the derivation of the backward-bending supply curve for labor. Although Figure 14.9 is a straightforward application of these tools, students are often confused by the plotting of income against leisure. Point out that this is just another type of utility maximization problem where the two goods are leisure and income. Income can be thought of as the consumption of goods other than leisure, in that more income buys more goods. You can also implicitly assume that the price of other goods is $1 and the price of leisure is the wage. The supply of labor curve is derived by changing the wage and finding the new level of hours worked. An individual’s supply curve of labor is backward bending only when the income effect dominates the substitution effect and leisure is a normal good. Show typical supply curves for each group in Table 14.2. For an experimental study of the labor-leisure trade-off see Battalio, Green, and Kagel, “Income-Leisure Tradeoff of Animal Workers,” American Economic Review (September 1981).Section 14.2 brings together labor demand and supply forboth competitive and monopolistic Although economic rent was presented in Chapter 8, it is reintroduced with more detail here. In Section 14.3, carefully explain why the marginal expenditure curve is above the average expenditure curve for a monopsonist (see Figure 14.14). You can discuss how a monopsonist would price discriminate, e.g., pay a different wage rate to each employee. With perfect price discrimination, the marginal revenue expenditure curve would coincide with the average expenditure curve. Although monopsony exists in some markets, the exercise of monopsony power is rare because of factor mobility. However, the employment of athletes by the owners of professional teams provides a good example (see Example 14.4 “Monopsony Power in the Market for Baseball Players”). On this same topic, see Sommers and Quinton, “Pay and Performance in Major League Baseball: The Case of the First Family of Free Agents,” Journal of Hu man Resources (Summer 1982). Section 14.4 discusses the case of unions to explore monopoly power on the part of the seller of the input.平狄克微观经济学第六版课后答案1. Why is a firm’s demand for labor curve more inelastic when the firm has monopoly power in the output market than when thefirm is producing competitively?The firm’s demand curve for labor is determined by the incremental revenue fromhiring an additional unit of labor known as the marginal revenue product of labor:MRPL = (MPL)(MR), the additional output (“product”) that the last worker produced,times the additional revenue earned by selling that output. In a competitive industry,the marginal revenue curve is perfectly elastic and equal to price. For a monopolist,marginal revenue is downward sloping. As more labor is hired and more output isproduced, the monopolist will charge a lower price and marginal revenue will diminish.All else the same, marginal revenue product will be smaller for the monopolist. Thisimplies that the marginal revenue product for the monopolist is more inelastic than forthe competitive firm.2. Why might a labor supply curve be backward bending?A backward-bending supply curve for labor may occur when the income effect of anincrease in the wage rate dominates the substitution effect. Labor supply decisions aremade by individuals choosing the most satisfying combination of work and other(leisure) activities. With a larger income, the individual can afford to work fewerhours: the income effect. As the wage rate increases, the value of leisure time (theopportunity cost of leisure) increases, thus inducing the individual to work longer hours:the substitution effect. Because the two effects work in opposite directions, the shapeof an individual’s labor supply curve depends on the individual’s preferences for income,consumption, and leisure.3. How is a computer company’s demand for computer programmers a derived demand?A computer c ompany’s demand for inputs, including programmers, depends on howmany computers it sells. The firm’s demand for programming labor depends on (isderived from) the demand it faces in its market for computers. As demand forcomputers shifts, the demand for programmers shifts.4. Compare the hiring choices of a monopsonistic and a competitive employer of workers. Which will hire more workers, and which will pay the higher wages? Explain.Since the decision to hire another worker means the monopsonist must pay a higherwage for all workers, and not just the last worker hired, its marginal expenditure curvelies above the input supply curve (the average expenditure curve). The monopsonist’sprofit-maximizing input demand, where the marginal expenditure curve intersects themarginal revenue product curve, will be less than the competitor’s profit-maximizinginput choice, where the average expenditure curve intersects the demand curve. Themonopsonist hires less labor, and the wage paid will be lessthan in a competitivemarket.5. Rock musicians sometimes earn over $1 million per year. Can you explain such large incomes in terms of economic rent?Economic rent is the difference between the actual payment to the factor of productionand the minimum amount that the factor is willing to accept. In this case, you mightassume that there are a limited number of top-quality rock musicians who will continueto play rock music no matter what they are paid. This results in a perfectly inelasticsupply curve, or something close to it. Given the high demand for rock music, thewage will be very high and there will be a lot of economic rent. If there was a largersupply of top-quality rock musicians, or a more elastic supply, then the economic rentwould be smaller.平狄克微观经济学第六版课后答案6. What happens to the demand for one input when the useof a complementary input increases?If the demand for the complementary input increases, the demand for the given inputwill increase as well. When demand for the complementary input increases, there isan increase in the quantity hired and possibly the price paid. Both of these changeswill increase the MRP of the given input, and hence will increase the quantity hiredand possibly the price paid. Whether the prices of the inputs increases depends on thedegree of monopsony power on the part of the firm.7. For a monopsonist, what is the relationship between the supply of an input and the marginal expenditure on it?The decision to increase employment means the monopsonist must pay all units thehigher price, and not just the last unit hired. Therefore, its marginal expenditurecurve lies above the input supply curve (the average expenditure curve). Hiring morelabor will increase the marginal expenditure, which willincrease the averageexpenditure. If the average expenditure is increasing, then the marginal expendituremust be greater than the average expenditure.8. Currently the National Football League has a system for drafting college players by which each player is picked by only one team. The player must sign with that team or not play in the league. What would happen to the wages of newly drafted and more experienced football players if the draft system were repealed, and all teams could compete for college players?The National Football League draft and reserve clause (a primary issue in the 1987-1988 season’s strike) creates a monopsoni st cartel among the owners of NFL teams. Ifthe draft system were repealed, competition among teams would increase wages offootball players to the point where the marginal revenue product of each player wouldbe equal to the player’s wage.9. The government wants to encourage individuals on welfare to become employed. It is considering two possibleincentive programs for firms.A. Give the firm $2 per hour for every individual on welfare who is hired.B. Give each firm that hires one or more welfare workers a payment of $1000 per year, irrespective of the number of hires.To what extent is each of these programs likely to be effective at increasing the employment opportunities for welfare workers?Firms will hire additional labor as long as the extra benefit is greater than the extracost of hiring the worker, or until MRPL = w. Option A would be effective because ifthe firm receives $2 per hour for every welfare worker hired then the effective wagepaid, w, will fall and the firm will find it optimal to hire more labor until the benefits(MRPL) again equal the costs (w) at the margin. Option B would be effective atincreasing employment opportunities also in that if the firm hires an individual whohas been on welfare they will then receive $1000. However,plan B is notnecessarily as effective as plan A given the firm only receives one lump sum paymentregardless of the number of welfare workers hired. In this case the firm only has anincentive to hire the one welfare worker, though they may of course choose to hiremore than one welfare worker.10. A small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 50 cookies per day, the cost of the average worker is $64 per day, and the price of a cookie is $1. Is the cookie company maximizing its profit? Explain.The marginal product of labor is 50 (cookies per day) and the price per cookie is 1($ per cookie) so the marginal revenue product is $50/day. Since this is less than thewage of $64 per day the cookie company is not maximizing profit. They are平狄克微观经济学第六版课后答案employing too much labor since the cost of labor is greaterthan the benefit of labor atthe margin, and are therefore producing too many cookies.11. A firm uses both labor and machines in production. Explain why an increase in the average wage rate causes both a movement along the labor demand curve and a shift of the curve.An increase in the wage rate causes an upward movement along the labor demandcurve. For any given marginal revenue product curve, the firm will find that theywant to hire fewer workers when the wage increases (an upward movement).However, when the wage increases the marginal cost will increase which will reducedesired output. When output falls, the firm will not need as many machines and themarginal product of labor curve will shift to the left, assuming machines and laborare complementary. This will also reduce the demand for labor.1. Suppose that the wage rate is $16 per hour, and the price of the product is $2. Values for output and labor are in units perhour.203547576570a. 0 1 2 3 4 5 6 Find the profit-maximizing quantity of labor.From the information given above, calculate the marginal product of labor, the extraoutput produced by hiring one more unit of labor, and then multiply by price to getthe marginal revenue product of labor. To find the profit-maximizing quantity oflabor, use the rule that the firm wants to hire labor only as long as the marginalrevenue product of labor is greater than the nominal wage, or up to the point wherethe marginal revenue product of labor is equal to the nominal wage. From thetable below, the firm will hire 5 units of labor.b. Suppose that the price of the product remains at $2 but that the wage rateincreases to $21. Find the new profit-maximizing quantity of labor.The above table does not change for this part of the problem. However, the firm nolonger wants to hire 5 units of labor because the benefit of the 5th unit ($16 per hour)is less than the cost of the 5th unit ($21 per hour). The firm would only hire 3 units平狄克微观经济学第六版课后答案of labor per hour since in this case the benefit still exceeds the cost at the margin.The firm would stick with 3 units instead of 4 unless fractional units are possible.At L=4 the cost is greater than the benefit so you lose profit by hiring the 4th unit oflabor.c. Suppose the price of the product increases to $3 and the wage remains at $16 perhour. Find the new profit-maximizing quantity of labor.A change in the price of the product will not change the marginal product of labor,but it will change the marginal revenue product of labor. The new marginal revenueproduct of labor is given in the table below. The firm will still want to hire 5 units oflabor, as in part a above. It will not hire the 6th unit because the extra benefit is lessthan the extra cost. Profit will be greater than in part a.d. Suppose that the price of the product remains at $2 and the wage remains at $16,but there is a technological breakthrough that increases output by 25% for any given level of labor. Find the new profit-maximizing quantity of labor.The technological breakthrough changes the number of units of output produced by agiven number of units of labor, and hence changes the marginal product and themarginal revenue product of labor. The new output values are found by multiplyingthe old values by 1.25. This new information is given in thetable below. The firmwill still choose to hire 5 units of labor. Profit will be greater than in part a.2. Assume that workers whose incomes are less than $10,000 currently pay no federal income taxes. Suppose a new government program guarantees each worker $5,000, whether or not he or she earns any income. For all earned income up to $10,000, the worker must pay a 50-percent tax. Draw the budget line facing the workers under this new program. How is the program likely to affect the labor supply curve of workers?The budget line for workers under this program is a straight line at $5,000. This lineis shown in the figure and table below. Workers earn $5,000 whether they work or not.平狄克微观经济学第六版课后答案6,0007,0008,0009,00010,000 3,000 3,500 4,000 4,500 5,000 2,000 1,500 1,000 500 0 5,000 5,000 5,000 5,000 5,0003. Using your knowledge of marginal revenue product, explain the following:a. A famous tennis star is paid $100,000 for appearing in a 30-second televisioncommercial. The actor who plays his doubles partner is paid $500.Marginal revenue product of labor, MRPL, is equal to marginal revenue from anincremental unit of output multiplied by the marginal product from an incrementalunit of labor, or in other words, the extra revenue generated by having the tennis starappear in the ad. The famous tennis star is able to help increase revenues far morethan the actor, so he is paid much more than the actor. The wage of the actor isdetermined by the supply and demand of actors willing to play tennis with tennis stars.平狄克微观经济学第六版课后答案b. The president of an ailing savings and loan is paid not to stay in his job for the lasttwo years of his contract.The marginal revenue product of the president of the ailing savings and loan is likely tobe negative and therefore, the savings and loan is better off by paying the president notto show up. They have calculated that they will lose less (or gain more) by paying thepresident off and hiring someone else.c. A jumbo jet carrying 400 passengers is priced higher than a 250-passenger modeleven though both aircraft cost the same to manufacture.The ability of the larger jet to generate more revenue increases its value to the airline,and therefore the airline is willing to pay more for it.4. The demands for the factors of production listed below have increased. What can you conclude about changes in the demand for the related consumer goods? If demands for the consumer goods remain unchanged, what other explanation is there for an increase in derived demands for these items?a. Computer memory chipsIn general, an increase in the demand for a good increasesthe demand for its factorinputs. The converse is not necessarily true; i.e., an increase in the demand for factorinputs does not necessarily imply an increase in the demand for the final product. Thedemand for an input may increase due to a change in the use of other inputs in theproduction process. As the price of another input increases, its demand falls and thedemand of substitutable inputs rises. In this case, the increase in the demand forcomputer memory chips must have been caused by an increase in the demand forpersonal computers given that computer memory chips are used only in computers, andthere are no substitutes for computer memory chips.b. Jet fuel for passenger planesWith an increase in the demand for jet travel, the demand for jet fuel will increase.There are no substitutes for jet fuel.c. Paper used for newsprintGiven the paper is being used to print newspapers then there must have been anincrease in the circulation of newspapers.d. Aluminum used for beverage cansWith an increase in demand for cold drinks in the summer, the seasonal demand foraluminum increases, so this is one possible explanation. Alternatively, if glass orplastic have become more expensive then this may affect the demand for aluminum.Finally, changes in the market for recycled aluminum may affect the demand for newaluminum.5. Suppose there are two groups of workers, unionized and nonunionized. Congress passes a law that requires all workers to join the union. What do you expect to happen to the wage rates of formerly nonunionized workers? of those workers who were originally unionized? What have you assumed about the union’s behavior?In general, we expect that nonunionized workers are earning lower wages thanunionized workers. If all workers are forced to join the union, it would be reasonableto expect that the nonunionized workers will now receive higher wages and theunionized workers will receive a wage that could go either way. There are a couple ofitems to consider. First, the union now has more monopoly power in that there are nononunion workers to act as substitutes for union workers. This gives more power tothe union, which means higher wages can in general be negotiated. However, the unionnow has more members to satisfy. If wages are kept at a high level, there will be fewerjobs, and hence some previously nonunionized workers may end up with no job. Theunion may wish to trade off some of the wage for a guarantee of more jobs. The平狄克微观经济学第六版课后答案average income of all workers will rise if labor demand is inelastic and will fall if labordemand is elastic.平狄克微观经济学第六版课后答案implications of the government’s monopsony power: fewer soldiers are hired, and theyare paid less than their marginal product. When a mandatory draft is implemented,even fewer professional soldiers are hired. Wages for volunteer soldiers fall, pusheddown by the fact that wages of the draftees can be very low.8. The demand for labor by an industry is given by the curve L = 1200 - 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. What is the equilibrium wage rate and quantity of labor hired? What is the economic rent earned by workers?The equilibrium wage rate is determined where quantity of labor supplied is equal tothe quantity of labor demanded:20w = 1,200 - 10w, or w = $40.平狄克微观经济学第六版课后答案Substituting into either the labor supply or labor demand equations, we find theequilibrium quantity of labor is 800:LS = (20)(40) = 800,andLD = 1,200 - (10)(40) = 800.Economic rent is the summation of the difference between the equilibrium wage andthe wage given by the labor supply curve. Here, it is the area above the labor supplycurve up to L = 800 and below the equilibrium wage. This triangle’s area is(0.5)(800)($40) = $16,000.9. This exercise is a continuation of Exercise 8. Suppose now that the only labor available is controlled by a monopolistic labor union that wishes to maximize the rent earned by union members. What will be the quantity of labor employed and the wage rate? How does your answer compare with your answer to Exercise 8? Discuss. (Hint: The union’s marginal revenue curve is given by L = 1200 - 20w.)Recall that the monopolist chooses output by setting marginal revenue equal to themarginal cost of supplying one more unit of output, asopposed to the competitive firmwhich chooses output by setting price equal to marginal cost, or in other wordsproducing where supply intersects demand. The monopolistic labor union acts in thesame way. To maximize rent in this case, the union will choose the number of workershired so that the marginal revenue to the union (the additional wages earned) is equalto the extra cost of inducing the worker to work. This involves choosing the quantity oflabor at the point where the marginal revenue curve crosses the supply curve of labor.Note that the marginal revenue curve has twice the slope of the labor demand curve.Marginal revenue is less than the wage, because when more workers are hired, allworkers receive a lower wage.Setting the marginal revenue curve equal to the supply curve for labor, we find:1200 - 20w = 20w, or w* = 30.At w*, we may determine the number of workers who are willing to work bysubstituting w* into the labor supply equation:L* = (20)(30) = 600.Therefore, if the union wants to maximize the rent that the union members earn, theunion should limit employment to 600 members.To determine the wage the members will earn, substitute L* into the labor demandequation:600 = 1,200 - 10w, or w = 60.The total rent the employed union members will receive is equal to:Rent = (60 - 30)(600) + (0.5)(30)(600) = $27,000.Notice that the wage is higher and the number of workers employed is lower than in Exercise (8).*10. A firm uses a single input, labor, to produce output q according to the production function q . The commodity sells for $150 per unit and the wage rate is $75 per hour.a. Find the profit-maximizing quantity of L.There are two (equivalent) methods of solving this problem.Most generally, definethe profit function, where revenues and costs are expressed in terms of the input,calculate the first order necessary condition (the first derivative of the profit function),and solve for the optimal quantity of the input. Alternatively, use the rule that the平狄克微观经济学第六版课后答案firm will hire labor up until the point where the marginal revenue product (p*MPL) equals the wage rate. Using the first method:TR TC pq wL150*8*L 75L1 600L2 75 0 LL 64.12b. Find the profit-maximizing quantity of q.From part a, the profit maximizing quantity of labor is 64 so substitute this quantity of labor into the production function to find q 8L 8* 64. 12c.d. What is the maximum profit? Profit is total revenue minustotal cost or 150*64 75*64 4800. Suppose now that the firm is taxed $30 per unit of output and the wage rate issubsidized at a rate of $15 per hour. Assume the firm is a price taker, so that the price of the product remains at $150. Find the new profit-maximizing levels of L, q, and profit.After the $30 tax per unit of output is paid, the firm receives 150-30=$120 per unit of output sold. This is the relevant price for the profit maximizing decision. The input cost is now 75-15=$60 per unit labor after the subsidy is received. The profit maximizing values can be found as in parts a-c above:TR TC pq wL120*8*L 60L1 480L2 60 0 LL 64q 64123840.e. Now suppose that the firm is required to pay a 20% tax on its profits. Find thenew profit-maximizing levels of L, q, and profit.The profit maximizing values can be found as in parts a-c above, only here profit is 80% of total revenue minus total cost.。
电子工业出版社-微观经济学-部分习题参考答案
微观经济学课后习题参考答案绪论 (3)一、名词解释 (3)二、单项选择 (3)三、判断题 (4)四、思考题 (4)第一章 (5)一、名词解释 (5)二、单项选择 (5)三、计算题 (5)四、思考题 (6)第二章弹性理论 (7)一、名词解释： (7)二、判断题： (8)三、单项选择题： (8)四、计算题： (8)五、思考题： (10)第三章 (10)一、名词解释： (10)二、单项选择题 (11)三、计算题 (11)四、思考题 (11)第四章消费者选择：基数效用论 (12)一、名词解释： (12)二、判断题： (12)三、单项选择题 (12)四、多项选择题： (12)五、计算题： (12)六、思考题： (13)第五章消费者选择：序数效用论 (14)一、名词解释： (14)二、判断题： (14)三、单项选择题： (14)四、多项选择题： (14)五、计算题: (15)六、思考题: (15)第六章生产理论 (16)一、名词解释： (16)二、判断题： (16)三、单项选择题： (16)四、多项选择： (17)五、计算题： (17)六、思考题： (18)第七章成本理论 (20)一、名词解释： (20)二、判断题： (20)三、单项选择题： (20)四、多项选择题： (21)五、计算题： (21)六、思考题： (22)第八章完全竞争市场中的厂商行为 (24)一、名词解释： (24)二、判断题 (24)三、单项选择题： (24)四、多项选择题： (24)五、计算题： (24)六、思考题： (26)第九章完全垄断市场中的厂商行为 (27)一、名词解释： (27)二、单项选择题： (27)三、多项选择题： (27)四、计算题： (27)五、思考题： (29)第十章垄断竞争市场中的厂商行为 (29)一、名词解释: (29)二、单项选择: (30)三、多项选择: (30)四、计算题: (30)五、思考题: (30)第十一章寡头垄断市场中的厂商行为 (31)一、名词解释： (31)二、单项选择题： (31)三、多项选择题： (32)四、计算题： (32)五、思考题： (32)第十二章生产要素市场与收入分配 (33)一、名词解释： (33)二、单选题： (34)三、判断题： (34)四、计算题： (34)五、思考题： (34)第十三章一般均衡和福利经济学 (36)一、名词解释 (36)二、单选题： (36)三、思考题： (36)第十四章市场失灵 (37)一、名词解释 (37)二、单选题： (38)三、判断题： (38)四、思考题： (38)绪论一、名词解释1.稀缺性：就是指人的欲望总是超过了能用于满足欲望的资源。
范里安-微观经济学现代观点(第七版)-14消费者剩余(含习题解答)-东南大学-曹乾
Chapter 14: Consumer’s SurplusIntermediate Microeconomics:A Modern Approach (7th Edition)Hal R. Varian(University of California at Berkeley)第14章:消费者消费者剩余剩余(含习题含习题详细详细详细解答解答)中级微观经济学:现代方法（第7版）范里安 著（加州大学伯克利）曹乾 译（东南大学 caoqianseu@ ）简短说明：翻译此书的原因是教学的需要，当然也因为对现行中文翻译版教材的不满，范里安的书是一碗香喷喷的米饭，但市场流行的翻译版却充满了沙子（翻译生硬而且错误颇多）。
我在美国流浪期间翻译了此书的大部分。
仅供教学和学习参考。
14消费者剩余在前面几章，我们已经知道如何从消费者不可观测的偏好或效用函数，推导出他的需求函数。
但在实践中，我们通常关心相反的问题——如何从观察到的消费者的需求行为估测他的偏好或效用。
事实上，我们在第5章和第7章已分析了这样的问题。
在第5章，我们学习了如何从消费者需求的观测数据估计效用函数的参数。
比如，在柯布-道格拉斯类型的偏好中，我们可以估计出描述消费者选择行为的效用函数。
我们是如何做到这一点的？只要计算每种商品的支出占消费者收入的比例即可。
根据推导出的效用函数，我们可以估计消费的变动。
在第7章，我们从消费者可观测到的选择行为入手，阐述了如何使用显示偏好这个工具还原消费者产生上述行为的潜在偏好。
还原出的无差异曲线可用来估测消费变动。
在本章我们介绍从可观测的需求行为推知消费者的效用的其他一些方法。
尽管有些方法不象第5章和第7章的方法那样具有一般性，但以后你就会知道在本书后面的内容中，本章介绍的方法比较有用。
我们从一种特殊的需求行为入手分析，这种需求行为可以让我们比较容易地还原效用。
然后，我们再分析偏好和需求行为更一般的情形。
14.1离散商品的需求第6章我们介绍过拟线性效用情形下的离散商品的需求问题，我们就从这个问题开始分析。
平狄克微观经济学第六版第十四章课后答案
CHAPTER 14MARKETS FOR FACTOR INPUTSThe following two chapters examine the markets for labor and capital. Although the discussion in this chapter is general, most of the examples refer to labor as the only variable input to production, wi th the exception of Example , which discusses “The Demand for Jet Fuel” by airlines. Labor demand and supply are discussed in the first section, and the competitive factor market equilibrium and economic rent are discussed in the second section. Section explores the factor market structure for the case where the buyer has monopsony power, and section explores the case of monopoly power on the part of the seller of the factor.An understanding of this chapter relies on concepts from Chapters 4 through 8 and 10. If you have just covered Chapters 11-13, you might begin by reviewing marginal product, marginal revenue, and cost minimization. You should then discuss marginal revenue product and= w. Explain why we are only interested in the portion of the profit-maximizing condition MRPLthe MP curve below the average product curve (the downward-sloping portion). The derivation of the firm’s demand curve for labor is straightforward when labor is the only factor, but becomes more complicated when there are several variable inputs. In particular, you might curve shifts as the firm substitutes one input for another in production explain why the MRPLin response to a price change by noting that the MRP L curve is drawn for a fixed level of the other variable input.When presenting the market labor demand curve, explain that since the input prices change as more inputs are demanded, the market demand curve is not simply the summation of individual demand curves. You can extend the presentation of price elasticity of input demand (see Example by discussing the conditions leading to price sensitivity. Elasticity is greater (1) when the elasticity of demand for the product is higher, (2) when it is easy to substitute one input for another, and (3) when the elasticity of supply is higher for other inputs. Elasticity of supply, which was discussed in Chapter 2, is reintroduced in Example . You should also distinguish between short-run and long-run elasticity (see Figure .If you have already covered substitution and income effects, the students will be ready for the derivation of the backward-bending supply curve for labor. Although Figure is a straightforward application of these tools, students are often confused by the plotting of income against leisure. Point out that this is just another type of utility maximization problem where the two goods are leisure and income. Income can be thought of as the consumption of goods other than leisure, in that more income buys more goods. You can also implicitly assume that the price of other goods is $1 and the price of leisure is the wage. The supply of labor curve is derived by changing the wage and finding the new level of hours worked. An individual’s supply curve of labor is backward bending only when the inc ome effect dominates the substitution effect and leisure is a normal good. Show typical supply curves for each group in Table . For an experimental study of the labor-leisure trade-off see Battalio, Green, and Kagel, “Income-Leisure Tradeoff of Animal Wo rkers,” American Economic Review (September 1981).Section brings together labor demand and supply for both competitive and monopolistic product markets. Although economic rent was presented in Chapter 8, it is reintroduced with more detail here. In Section , carefully explain why the marginal expenditure curve is above the average expenditure curve for a monopsonist (see Figure . You can discuss how a monopsonist would price discriminate, ., pay a different wage rate to each employee. With perfect price discrimination, the marginal revenue expenditure curve would coincide with the average expenditure curve. Although monopsony exists in some markets, the exercise of monopsony power is rare because of factor mobility. However, the employment of athletes by the owners of professional teams provides a good example (see Example “Monopsony Power in the Market for Baseball Players”). On this same topic, see Sommers and Quinton, “Pay and Performance inMajor League Baseball: The Case of the First Family of Free Agents,” Journal of Human Resources (Summer 1982). Section discusses the case of unions to explore monopoly power on the part of the seller of the input.1. Why is a firm’s demand for labor curve more inelastic when the firm has monopoly power in the output market than when the firm is producing competitivelyThe firm’s demand curve for labor is determined by the incremental revenue fromhiring an additional unit of labor known as the marginal revenue product oflabor: MRPL = (MPL)(MR), the additional output (“product”) that the last workerproduced, times the additional revenue earned by selling that output. In acompetitive industry, the marginal revenue curve is perfectly elastic and equalto price. For a monopolist, marginal revenue is downward sloping. As morelabor is hired and more output is produced, the monopolist will charge a lowerprice and marginal revenue will diminish. All else the same, marginal revenueproduct will be smaller for the monopolist. This implies that the marginalrevenue product for the monopolist is more inelastic than for the competitivefirm.2. Why might a labor supply curve be backward bendingA backward-bending supply curve for labor may occur when the income effect of anincrease in the wage rate dominates the substitution effect. Labor supplydecisions are made by individuals choosing the most satisfying combination ofwork and other (leisure) activities. With a larger income, the individual canafford to work fewer hours: the income effect. As the wage rate increases, thevalue of leisure time (the opportunity cost of leisure) increases, thus inducingthe individual to work longer hours: the substitution effect. Because the twoeffects work in opposite directions, the shape of an individua l’s labor supplycurve depends on the individual’s preferences for income, consumption, andleisure.3. How is a computer company’s demand for computer programmers a derived demandA computer company’s demand for inputs, including programmers, depends on howmany computers it sells. The firm’s demand for programming labor depends on(is derived from) the demand it faces in its market for computers. As demandfor computers shifts, the demand for programmers shifts.4. Compare the hiring choices of a monopsonistic and a competitive employer of workers. Which will hire more workers, and which will pay the higher wages Explain.Since the decision to hire another worker means the monopsonist must pay ahigher wage for all workers, and not just the last worker hired, its marginalexpenditure curve lies above the input supply curve (the average expenditurecurve). The monopsonist’s profit-maximizing input demand, where the marginalexpenditure curve intersects the marginal revenue product curve, will be lessthan the competitor’s profit-maximizing input choice, where the averageexpenditure curve intersects the demand curve. The monopsonist hires less labor,and the wage paid will be less than in a competitive market.5. Rock musicians sometimes earn over $1 million per year. Can you explain such large incomes in terms of economic rentEconomic rent is the difference between the actual payment to the factor ofproduction and the minimum amount that the factor is willing to accept. In thiscase, you might assume that there are a limited number of top-quality rockmusicians who will continue to play rock music no matter what they are paid.This results in a perfectly inelastic supply curve, or something close to it.Given the high demand for rock music, the wage will be very high and there willbe a lot of economic rent. If there was a larger supply of top-quality rockmusicians, or a more elastic supply, then the economic rent would be smaller.6. What happens to the demand for one input when the use of a complementary input increasesIf the demand for the complementary input increases, the demand for the giveninput will increase as well. When demand for the complementary input increases,there is an increase in the quantity hired and possibly the price paid. Both ofthese changes will increase the MRP of the given input, and hence will increasethe quantity hired and possibly the price paid. Whether the prices of theinputs increases depends on the degree of monopsony power on the part of thefirm.7. For a monopsonist, what is the relationship between the supply of an input and the marginal expenditure on itThe decision to increase employment means the monopsonist must pay all units thehigher price, and not just the last unit hired. Therefore, its marginalexpenditure curve lies above the input supply curve (the average expenditurecurve). Hiring more labor will increase the marginal expenditure, which willincrease the average expenditure. If the average expenditure is increasing,then the marginal expenditure must be greater than the average expenditure.8. Currently the National Football League has a system for drafting college players by which each player is picked by only one team. The player must sign with that team or not play in the league. What would happen to the wages of newly drafted and more experienced football players if the draft system were repealed, and all teams could compete for college playersThe National Football League draft and reserve clause (a primary issue in the1987-1988 season’s strike) creates a monopsonist cartel among the owners of NFLteams. If the draft system were repealed, competition among teams would increasewages of football players to the point where the marginal revenue product ofeach player would be equ al to the player’s wage.9. The government wants to encourage individuals on welfare to become employed. It is considering two possible incentive programs for firms.A. Give the firm $2 per hour for every individual on welfare who is hired.B. Give each firm that hires one or more welfare workers a payment of $1000 peryear, irrespective of the number of hires.To what extent is each of these programs likely to be effective at increasing the employment opportunities for welfare workersFirms will hire additional labor as long as the extra benefit is greater thanthe extra cost of hiring the worker, or until MRP L = w. Option A would beeffective because if the firm receives $2 per hour for every welfare workerhired then the effective wage paid, w, will fall and the firm will find itoptimal to hire more labor until the benefits (MRP L) again equal the costs (w)at the margin. Option B would be effective at increasing employmentopportunities also in that if the firm hires an individual who has been onwelfare they will then receive $1000. However, plan B is not necessarily aseffective as plan A given the firm only receives one lump sum paymentregardless of the number of welfare workers hired. In this case the firm onlyhas an incentive to hire the one welfare worker, though they may of coursechoose to hire more than one welfare worker.10. A small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 50 cookies per day, the cost of the average worker is $64 per day, and the price of a cookie is $1. Is the cookie company maximizing its profit Explain.The marginal product of labor is 50 (cookies per day) and the price per cookieis 1 ($ per cookie) so the marginal revenue product is $50/day. Since this isless than the wage of $64 per day the cookie company is not maximizing profit.They are employing too much labor since the cost of labor is greater than thebenefit of labor at the margin, and are therefore producing too many cookies.11. A firm uses both labor and machines in production. Explain why an increase in the average wage rate causes both a movement along the labor demand curve and a shift of the curve.An increase in the wage rate causes an upward movement along the labor demandcurve. For any given marginal revenue product curve, the firm will find thatthey want to hire fewer workers when the wage increases (an upward movement).However, when the wage increases the marginal cost will increase which willreduce desired output. When output falls, the firm will not need as manymachines and the marginal product of labor curve will shift to the left,assuming machines and labor are complementary. This will also reduce thedemand for labor.1. Suppose that the wage rate is $16 per hour, and the price of the product is $2. Values for output and labor are in units per hour.q L0 020 135 247 357 465 570 6a.Find the profit-maximizing quantity of labor.From the information given above, calculate the marginal product of labor, theextra output produced by hiring one more unit of labor, and then multiply byprice to get the marginal revenue product of labor. To find the profit-maximizing quantity of labor, use the rule that the firm wants to hire laboronly as long as the marginal revenue product of labor is greater than thenominal wage, or up to the point where the marginal revenue product of laboris equal to the nominal wage. From the table below, the firm will hire 5units of labor.b.Suppose that the price of the product remains at $2 but that the wage rateincreases to $21. Find the new profit-maximizing quantity of labor.The above table does not change for this part of the problem. However, thefirm no longer wants to hire 5 units of labor because the benefit of the 5thunit ($16 per hour) is less than the cost of the 5th unit ($21 per hour). Thefirm would only hire 3 units of labor per hour since in this case the benefitstill exceeds the cost at the margin. The firm would stick with 3 unitsinstead of 4 unless fractional units are possible. At L=4 the cost is greaterthan the benefit so you lose profit by hiring the 4th unit of labor.c.Suppose the price of the product increases to $3 and the wage remains at $16 perhour. Find the new profit-maximizing quantity of labor.A change in the price of the product will not change the marginal product oflabor, but it will change the marginal revenue product of labor. The newmarginal revenue product of labor is given in the table below. The firm willstill want to hire 5 units of labor, as in part a above. It will not hire the6th unit because the extra benefit is less than the extra cost. Profit will begreater than in part a.d.Suppose that the price of the product remains at $2 and the wage remains at $16,but there is a technological breakthrough that increases output by 25% for any given level of labor. Find the new profit-maximizing quantity of labor.The technological breakthrough changes the number of units of output producedby a given number of units of labor, and hence changes the marginal productand the marginal revenue product of labor. The new output values are found bymultiplying the old values by . This new information is given in the tablebelow. The firm will still choose to hire 5 units of labor. Profit will begreater than in part a.6,0003,0002,000 5,0007,0003,5001,500 5,0008,0004,0001,000 5,0009,0004,500 500 5,00010,0005,000 0 5,0003. Using your knowledge of marginal revenue product, explain the following:a. A famous tennis star is paid $100,000 for appearing in a 30-second televisioncommercial. The actor who plays his doubles partner is paid $500.Marginal revenue product of labor, MRP, is equal to marginal revenue from anLincremental unit of output multiplied by the marginal product from anincremental unit of labor, or in other words, the extra revenue generated byhaving the tennis star appear in the ad. The famous tennis star is able to helpincrease revenues far more than the actor, so he is paid much more than theactor. The wage of the actor is determined by the supply and demand of actorswilling to play tennis with tennis stars.b. The president of an ailing savings and loan is paid not to stay in his job for thelast two years of his contract.The marginal revenue product of the president of the ailing savings and loan islikely to be negative and therefore, the savings and loan is better off bypaying the president not to show up. They have calculated that they will loseless (or gain more) by paying the president off and hiring someone else.c. A jumbo jet carrying 400 passengers is priced higher than a 250-passenger model eventhough both aircraft cost the same to manufacture.The ability of the larger jet to generate more revenue increases its value tothe airline, and therefore the airline is willing to pay more for it.4. The demands for the factors of production listed below have increased. What can you conclude about changes in the demand for the related consumer goods If demands for the consumer goods remain unchanged, what other explanation is there for an increase in derived demands for these itemsa. Computer memory chipsIn general, an increase in the demand for a good increases the demand for itsfactor inputs. The converse is not necessarily true; ., an increase in thedemand for factor inputs does not necessarily imply an increase in the demandfor the final product. The demand for an input may increase due to a change inthe use of other inputs in the production process. As the price of anotherinput increases, its demand falls and the demand of substitutable inputs rises.In this case, the increase in the demand for computer memory chips must havebeen caused by an increase in the demand for personal computers given thatcomputer memory chips are used only in computers, and there are no substitutesfor computer memory chips.b. Jet fuel for passenger planesWith an increase in the demand for jet travel, the demand for jet fuel willincrease. There are no substitutes for jet fuel.c. Paper used for newsprintGiven the paper is being used to print newspapers then there must have been anincrease in the circulation of newspapers.d. Aluminum used for beverage cansWith an increase in demand for cold drinks in the summer, the seasonal demandfor aluminum increases, so this is one possible explanation. Alternatively, ifglass or plastic have become more expensive then this may affect the demand foraluminum. Finally, changes in the market for recycled aluminum may affect thedemand for new aluminum.5. Suppose there are two groups of workers, unionized and nonunionized. Congress passes a law that requires all workers to join the union. What do you expect to happen to the wage rates of formerly nonunionized workers of those workers who were originally unionized What have you assumed about the union’s behaviorIn general, we expect that nonunionized workers are earning lower wages thanunionized workers. If all workers are forced to join the union, it would bereasonable to expect that the nonunionized workers will now receive higher wagesand the unionized workers will receive a wage that could go either way. Thereare a couple of items to consider. First, the union now has more monopoly power in that there are no nonunion workers to act as substitutes for union workers. This gives more power to the union, which means higher wages can in general be negotiated. However, the union now has more members to satisfy. If wages are kept at a high level, there will be fewer jobs, and hence some previously nonunionized workers may end up with no job. The union may wish to trade off some of the wage for a guarantee of more jobs. The average income of all workers will rise if labor demand is inelastic and will fall if labor demand is elastic.soldiers until the marginal value of the last soldier is equal to his or her pay.There are two implications of the government’s monopsony power: fewer soldiersare hired, and they are paid less than their marginal product. When a mandatorydraft is implemented, even fewer professional soldiers are hired. Wages forvolunteer soldiers fall, pushed down by the fact that wages of the draftees canbe very low.8. The demand for labor by an industry is given by the curve L = 1200 - 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. What is the equilibrium wage rate and quantity of labor hired What is the economic rent earned by workersThe equilibrium wage rate is determined where quantity of labor supplied isequal to the quantity of labor demanded:20w = 1,200 - 10w, or w = $40.Substituting into either the labor supply or labor demand equations, we find theequilibrium quantity of labor is 800:L= (20)(40) = 800,SandL= 1,200 - (10)(40) = 800.DEconomic rent is the summation of the difference between the equilibrium wageand the wage given by the labor supply curve. Here, it is the area above thelabor supply curve up to L= 800 and below the equilibrium wage. Thistriangle’s area is (800)($40) = $16,000.9. This exercise is a continuation of Exercise 8. Suppose now that the only labor available is controlled by a monopolistic labor union that wishes to maximize the rent earned by union members. What will be the quantity of labor employed and the wage rate How does your answer compare with your answer to Exercise 8 Discuss. (Hint: The union’s marginal revenue curve is given by L = 1200 - 20w.)Recall that the monopolist chooses output by setting marginal revenue equal tothe marginal cost of supplying one more unit of output, as opposed to thecompetitive firm which chooses output by setting price equal to marginal cost,or in other words producing where supply intersects demand. The monopolisticlabor union acts in the same way. To maximize rent in this case, the union willchoose the number of workers hired so that the marginal revenue to the union(the additional wages earned) is equal to the extra cost of inducing the workerto work. This involves choosing the quantity of labor at the point where themarginal revenue curve crosses the supply curve of labor. Note that themarginal revenue curve has twice the slope of the labor demand curve. Marginalrevenue is less than the wage, because when more workers are hired, all workersreceive a lower wage.Setting the marginal revenue curve equal to the supply curve for labor, we find:1200 - 20w = 20w, or w* = 30.At w*, we may determine the number of workers who are willing to work bysubstituting w* into the labor supply equation:L* = (20)(30) = 600.Therefore, if the union wants to maximize the rent that the union members earn,the union should limit employment to 600 members.To determine the wage the members will earn, substitute L* into the labor demandequation:600 = 1,200 - 10w, or w = 60.The total rent the employed union members will receive is equal to:Rent = (60 - 30)(600) + (30)(600) = $27,000.Notice that the wage is higher and the number of workers employed is lower thanin Exercise (8).*10. A firm uses a single input, labor, to produce output q according to the productio n function . The commodity sells for $150 per unit and the wage rate is $75 per hour.a.Find the profit-maximizing quantity of L.There are two (equivalent) methods of solving this problem. Most generally,define the profit function, where revenues and costs are expressed in terms ofthe input, calculate the first order necessary condition (the first derivativeof the profit function), and solve for the optimal quantity of the input. Alternatively, use the rule that the firm will hire labor up until the pointwhere the marginal revenue product (p*MP L ) equals the wage rate. Using thefirst method:π=TR -TC =pq -wLπ=150*8*L 12-75L∂π∂L=600L -12-75=0L =64.b. Find the profit-maximizing quantity of q.From part a, the profit maximizing quantity of labor is 64 so substitute thisquantity of labor into the production function to find q =8L 12=8*64=64.c. What is the maximum profitProfit is total revenue minus total cost or π=150*64-75*64=4800.d. Suppose now that the firm is taxed $30 per unit of output and the wage rate issubsidized at a rate of $15 per hour. Assume the firm is a price taker, so that the price of the product remains at $150. Find the new profit-maximizing levels of L, q, and profit.After the $30 tax per unit of output is paid, the firm receives 150-30=$120per unit of output sold. This is the relevant price for the profit maximizingdecision. The input cost is now 75-15=$60 per unit labor after the subsidy isreceived. The profit maximizing values can be found as in parts a-c above:e. Now suppose that the firm is required to pay a 20% tax on its profits. Find thenew profit-maximizing levels of L, q, and profit.The profit maximizing values can be found as in parts a-c above, only hereprofit is 80% of total revenue minus total cost.π=.8(TR -TC )=.8(pq -wL )π=.8(150*8*L 12-75L )∂π∂L=480L -12-60=0L =64q =64π=3840.。
(整理)平狄克微观经济学答案第14-16章
第十四章生产性要素市场习题简解１、答：在竞争性要素市场有ＭＲＰL=ＭＰL*Ｐ，在垄断市场有P>MR，所以ＭＰL*Ｐ>ＭＲＭ*ＰL，劳动的需求曲线是关于要素价格W，要素需求L是要素价格的涵数。
于是其弹性为Ｅdl＝dL/dW*W/L，厂商为了追求利润最大化总有MRP=W，而垄断厂商的ＭＲＰ（垄）<ＭＲＰ（竞），所以ＭＲＰ（垄）雇用工人的工资W小于竞争性厂商雇用工人的工资，即所以它比竞争性生产时弹性小。
２、我们知道劳动的供给曲线是向后弯曲的，它表示劳动的供给量起初随工资率的提高而增加，而工资率提高到一定程度后，供给量会随W提高而减少，从而使供给曲线呈后弯曲形状。
下面我们可以用收入效应和替代效应对此种情况加以分析，我们将一天分成工作时间和闲瑕时间，随着工资率的提高，闲瑕的价格也提高。
替代效应是因为较高的闲瑕价格鼓励工人用工作代替闲瑕。
收入效应是因为较高的工资率提高了工人的购买力。
用下图分析为：Ｒ（其中替代效应小于收入效应，向后弯曲）ＰＨ３、（1）何为引致需求，厂商对生产要素的需求是从消费者对产品的直接需求中派生出来的，即派生需求或引致需求。
（2）电脑公司的主要任务是销售电脑以获得利润，而在销售电脑时，售后服务也是同样重要的。
必须为客户组装各种程序，即软件系统需要雇用电脑编程人员。
因此，电脑公司对电脑编程人员的需求是引致需求。
４、垄断性雇主即买方垄断，也就是说厂商在要素市场（作为要素的买方）是垄断者，但在产品市场上是完全竞争者，ＭＥ为边际支出，ＭＥ＝ＭＣ*ＭＰ，在完全竞争市场中ＭＥ＝Ｗ且Ｗ（Ｌ）＝Ｗ为要素的供给的曲线，ＭＥ＝ＭＲＰ为买方垄断厂商的要素使用原则，从而Ｅ点为垄断厂高均衡点，Ｂ点为完全竞争市场的均衡点。
由图可知：Ｌ0<Ｌ1，Ｗ0<Ｗ2，买方垄断厂商无需求曲线，所以Ｗ0为均衡价格。
所以，竞争性雇主雇用较多的工人且支付较多的工资。
WMEW1 EW2 W(L)W0 A BMRP=DL0 L1 L５、摇滚乐手的供给是缺乏弹性的，各个摇滚乐手的演唱风格不同，消费者独特的喜好，对于摇滚乐手的票价的不同其消费数量的变化不大，所以，摇滚乐手的演唱属于缺乏弹性的产品。
曼昆《经济学原理(微观经济学分册)》(第6版)课后习题详解(第14章 竞争市场上的企业)
曼昆《经济学原理（微观经济学分册）》（第6版）课后习题详解（第14章竞争市场上的企业）Born to win经济学考研交流群 <<曼昆《经济学原理（微观经济学分册）》（第6版）第14章竞争市场上的企业课后习题详解跨考网独家整理最全经济学考研真题，经济学考研课后习题解析资料库，您可以在这里查阅历年经济学考研真题，经济学考研课后习题，经济学考研参考书等内容，更有跨考考研历年辅导的经济学学哥学姐的经济学考研经验，从前辈中获得的经验对初学者来说是宝贵的财富，这或许能帮你少走弯路，躲开一些陷阱。
以下内容为跨考网独家整理，如您还需更多考研资料，可选择经济学一对一在线咨询进行咨询。
一、概念题1．竞争市场（competitive market）（山东大学2021研）答：竞争市场指有许多买者和卖者，以至于每一个人对市场价格的影响都微不足道的市场。
竞争市场一般指完全竞争市场。
完全竞争又称为纯粹竞争，是指不存在任何阻碍和干扰因素的市场情况，亦即没有任何垄断因素的市场结构。
完全竞争市场需要具备以下四个条件：①市场上有大量的买者和卖者；②市场上每一个厂商提供的商品都是同质的；③所有的资源具有完全的流动性；④信息是完全的。
2．平均收益（average revenue）答：平均收益指厂商在出售一定数量的产品时，平均出售每一单位的产品所获得的货币收入，即总收益除以销售量。
在不同的市场结构中，厂商的平均收益具有不同的变化规律。
在完全竞争市场中，由于单个厂商可以在市场价格下出售任何数量的商品，厂商面临一条水平的需求线（即平均收益曲线）。
这时，当市场达到长期均衡时，厂商的平均收益与平均成本相等，所以厂商的利润为零，厂商只能得到正常利润。
在非完全竞争市场上，厂商能够影响市场价格。
为了多销售一单位产品，它不仅要以比原来价格更低的价格出售这一产品，而且还必须降低原来所有产品的价格。
因此，厂商面临的需求曲线（即平均收益曲线）向右下方倾斜，表明厂商想要多销售产品，必须降低产品价格。
微观经济学 第十四章(曼昆)
数量 (市场
• 现有企业及潜在进入者都有相同的成本 • 其他企业进入或退出市场，不会影响任一
家企业的成本 • 市场上的企业数量
– 短期内是固定的 – 长期内是可变的（由于有企业进入或
退出）
微课制微作课制教作程教程
短期：有固定数量企业的市场供给 • 完全竞争市场上所有企业的短期供
给曲线水平加总，就得到了整个市 场的短期供给曲线
• 当老板决定是否营业时，只有可变成本— —增加的购买原料的成本和额外的员工工 资——是需要被考虑的，只有在午餐时， 从顾客得到的收入少到不能弥补餐馆的可 变成本时，老板才会在午餐时间关门。
微课制微作课制教作程教程
企业的短期停止营业决策
• 如果生产能得到的收益小于生产的可变成 本，企业就停止营业。
微课制微作课制教作程教程
竞争企业的收益
• 农民从每斤大米的销售中得到了多少收益? • 如果多销售1斤大米，农民能得到多少额外
收益?
微课制微作课制教作程教程
竞争企业的收益
• 平均收益是总收益除以销售量。
• 平均收益反映企业销售一单位物品得到的收 益。
• 平均收益Average revenue (AR)
P
P=AR=MR
Q
微课制作教程
表1 Vaca的奶牛场：竞争企业的总
收益、平均收益和边际收益
产量（加 价格（加
仑）
仑）
总收益 （美元）
平均收益 （美元）
边际收益 （美元）
微课制微作课制教作程教程
利润最大化与竞争企业的供给曲线
• 完全竞争企业的目标是利润最大化，利润 等于总收益减去总成本。
• 因此，企业在使总收益和总成本的差最大 的产量进行生产。
中级微观经济学复习题及答案
一、简述题1.如果我们看到在（1y ，2y ）可以同时得到的情况下，消费者却选择了（1x ，2x ），那么，（1x ，2x）（1y ，2y ）的结论是否正确？(第二章，题1)答：不正确，因为也可能是消费者恰好在这两个消费束之间无差异。
也就是说，根据题目的已知条件我们只能断定（1x ，2x ）（1y ，2y ），这是弱偏好。
对本题加上什么样的假设前提，题目中的断定就是正确的？如果加上消费者的偏好是严格凸的这一限制条件，断定（1x ，2x）（1y ，2y ）就是正确的。
因为严格凸性条件下，最优解若存在则只有一个。
2.若某个消费者的偏好可以由效用函数22121122(,)10(2)50u x x x x x x =++-来描述，那么对消费者而言，商品1和商品2是完全替代的吗？为什么？（第二章，题5）答：两种商品完全替代即它们的边际替代率为常数。
边际替代率是在消费者保证效用相等的条件下，用一种商品替代另一种商品的比率。
因此有： 商品1的边际效用为MU 1=du /dx 1=10(2x 1 +2 x 2)商品2的边际 效用为MU 2= du /dx 2=10(2x 1 +2 x 2)商品1对商品2的边际替代率MRS 12= MU 1 / MU 2 =1。
满足完全替代品的效用函数特征，因此这个说法是正确的。
3.假定消费者购买x 和y 两种商品，起初，x x y yMU P MU P =，若x P 下降，y P 保持不变，再假定x 的需求价格弹性大于1，则y 的购买量会不会发生变化？（第三章，题3）答：原来消费处于均衡状态。
设消费者花在x 商品上的支出为1m ，则1x m p x =。
对该式求x p 的导数有，11x x x x x p dm dx dx p x x dp dp dp x ⎡⎤=+=+⎢⎥⎣⎦，因x 的需求价格弹性大于1（绝对值），所以有10x dm dp <，即随着价格下降，消费者花在x 商品上的支出会增加。
平狄克微观经济学第六版第十四章课后答案解析
CHAPTER 14MARKETS FOR FACTOR INPUTSThe following two chapters examine the markets for labor and capital. Although the discussion in this chapter is general, most of the examples refer to labor as the only variable input to production, with the exception of Example 14.1, which discusses “The Demand for Jet Fuel”by airlines. Labor demand and supply are discussed in the first section, and the competitive factor market equilibrium and economic rent are discussed in the second section. Section 14.3 explores the factor market structure for the case where the buyer has monopsony power, and section 14.4 explores the case of monopoly power on the part of the seller of the factor.An understanding of this chapter relies on concepts from Chapters 4 through 8 and 10. If you have just covered Chapters 11-13, you might begin by reviewing marginal product, marginal revenue, and cost minimization. You should then discuss marginal revenue product and the profit-maximizing condition MRP L = w. Explain why we are only interested in the portion of the MP curve below the average product curve (the downward-sloping portion). The derivation of the firm’s demand curve for labor is straightforward when labor is the only factor, but becomes more complicated when there are several variable inputs. In particular, you might explain why the MRP L curve shifts as the firm substitutes one input for another in production in response to a price change by noting that the MRP L curve is drawn for a fixed level of the other variable input.When presenting the market labor demand curve, explain that since the input prices change as more inputs are demanded, the market demand curve is not simply the summation of individual demand curves. You can extend the presentation of price elasticity of input demand (see Example 14.1) by discussing the conditions leading to price sensitivity. Elasticity is greater (1) when the elasticity of demand for the product is higher, (2) when it is easy to substitute one input for another, and (3) when the elasticity of supply is higher for other inputs. Elasticity of supply, which was discussed in Chapter 2, is reintroduced in Example 14.2. You should also distinguish between short-run and long-run elasticity (see Figure 14.6).If you have already covered substitution and income effects, the students will be ready for the derivation of the backward-bending supply curve for labor. Although Figure 14.9 is a straightforward application of these tools, students are often confused by the plotting of income against leisure. Point out that this is just another type of utility maximization problem where the two goods are leisure and income. Income can be thought of as the consumption of goods other than leisure, in that more income buys more goods. You can also implicitly assume that the price of other goods is $1 and the price of leisure is the wage. The supply of labor curve is derived by changing the wage and finding the new level of hours worked. An individual’s supply curve of labor is backward bending only when the income effect dominates the substitution effect and leisure is a normal good. Show typical supply curves for each group in Table 14.2. For anexperimental study of the labor-leisure trade-off see Battalio, Green, and Kagel, “Income-Leisure Tradeoff of Animal Workers,”American Economic Review (September 1981).Section 14.2 brings together labor demand and supply for both competitive and monopolistic product markets. Although economic rent was presented in Chapter 8, it is reintroduced with more detail here. In Section 14.3, carefully explain why the marginal expenditure curve is above the average expenditure curve for a monopsonist (see Figure 14.14). You can discuss how a monopsonist would price discriminate, e.g., pay a different wage rate to each employee. With perfect price discrimination, the marginal revenue expenditure curve would coincide with the average expenditure curve. Although monopsony exists in some markets, the exercise of monopsony power is rare because of factor mobility. However, the employment of athletes by the owners of professional teams provides a good example (see Example 14.4 “Monopsony Power in the Market for Baseball Players”). On this same topic, see Sommers and Quinton, “Pay and Performance in Major League Baseball: The Case of the First Family of Free Agents,”Journal of Human Resources (Summer 1982). Section 14.4 discusses the case of unions to explore monopoly power on the part of the seller of the input.* *1. Why is a firm’s demand for labor curve more inelastic when the firm has monopoly power in the output market than when the firm is producing competitively?The firm’s demand curve for labor is determined by the incremental revenue fromhiring an additional unit of labor known as the marginal revenue product of labor:MRP L= (MP L)(MR), the additional output (“product”) that the last workerproduced, times the additional revenue earned by selling that output. In acompetitive industry, the marginal revenue curve is perfectly elastic and equal toprice. For a monopolist, marginal revenue is downward sloping. As more labor ishired and more output is produced, the monopolist will charge a lower price andmarginal revenue will diminish. All else the same, marginal revenue product will besmaller for the monopolist. This implies that the marginal revenue product for themonopolist is more inelastic than for the competitive firm.2. Why might a labor supply curve be backward bending?A backward-bending supply curve for labor may occur when the income effect of anincrease in the wage rate dominates the substitution effect. Labor supply decisionsare made by individuals choosing the most satisfying combination of work and other(leisure) activities. With a larger income, the individual can afford to work fewerhours: the income effect. As the wage rate increases, the value of leisure time (theopportunity cost of leisure) increases, thus inducing the individual to work longerhours: the substitution effect. Because the two effects work in opposite directions,the shape of an individual’s labor supply curve depends on the individual’spreferences for income, consumption, and leisure.3. How is a computer company’s demand for computer programmers a derived demand?A computer company’s demand for inputs, including programmers, depends onhow many computers it sells. The firm’s demand for programming labor dependson (is derived from) the demand it faces in its market for computers. As demandfor computers shifts, the demand for programmers shifts.4. Compare the hiring choices of a monopsonistic and a competitive employer of workers. Which will hire more workers, and which will pay the higher wages? Explain.Since the decision to hire another worker means the monopsonist must pay a higherwage for all workers, and not just the last worker hired, its marginal expenditurecurve lies above the input supply curve (the average expenditure curve). Themonopsonist’s profit-maximizing input demand, where the marginal expenditurecurve intersects the marginal revenue product curve, will be less than thecompetitor’s profit-maximizing input choice, where the average expenditure curveintersects the demand curve. The monopsonist hires less labor, and the wage paidwill be less than in a competitive market.5. Rock musicians sometimes earn over $1 million per year. Can you explain such large incomes in terms of economic rent?Economic rent is the difference between the actual payment to the factor ofproduction and the minimum amount that the factor is willing to accept. In thiscase, you might assume that there are a limited number of top-quality rockmusicians who will continue to play rock music no matter what they are paid. Thisresults in a perfectly inelastic supply curve, or something close to it. Given the highdemand for rock music, the wage will be very high and there will be a lot ofeconomic rent. If there was a larger supply of top-quality rock musicians, or a moreelastic supply, then the economic rent would be smaller.6. What happens to the demand for one input when the use of a complementary input increases?If the demand for the complementary input increases, the demand for the giveninput will increase as well. When demand for the complementary input increases,there is an increase in the quantity hired and possibly the price paid. Both of thesechanges will increase the MRP of the given input, and hence will increase thequantity hired and possibly the price paid. Whether the prices of the inputsincreases depends on the degree of monopsony power on the part of the firm.7. For a monopsonist, what is the relationship between the supply of an input and the marginal expenditure on it?The decision to increase employment means the monopsonist must pay all units thehigher price, and not just the last unit hired. Therefore, its marginal expenditurecurve lies above the input supply curve (the average expenditure curve). Hiringmore labor will increase the marginal expenditure, which will increase the averageexpenditure. If the average expenditure is increasing, then the marginalexpenditure must be greater than the average expenditure.8. Currently the National Football League has a system for drafting college players by which each player is picked by only one team. The player must sign with that team or not play in the league. What would happen to the wages of newly drafted and more experienced football players if the draft system were repealed, and all teams could compete for college players?The National Football League draft and reserve clause (a primary issue in the 1987-1988 season’s strike) creates a monopsonist cartel among the owners of NFL teams.If the draft system were repealed, competition among teams would increase wagesof football players to the point where the marginal revenue product of each playerwould be equal to the player’s wage.9. The government wants to encourage individuals on welfare to become employed. It is considering two possible incentive programs for firms.A. Give the firm $2 per hour for every individual on welfare who is hired.B. Give each firm that hires one or more welfare workers a payment of $1000 peryear, irrespective of the number of hires.To what extent is each of these programs likely to be effective at increasing the employment opportunities for welfare workers?Firms will hire additional labor as long as the extra benefit is greater than the extracost of hiring the worker, or until MRP L = w. Option A would be effective becauseif the firm receives $2 per hour for every welfare worker hired then the effectivewage paid, w, will fall and the firm will find it optimal to hire more labor until thebenefits (MRP L) again equal the costs (w) at the margin. Option B would beeffective at increasing employment opportunities also in that if the firm hires anindividual who has been on welfare they will then receive $1000. However, plan Bis not necessarily as effective as plan A given the firm only receives one lump sumpayment regardless of the number of welfare workers hired. In this case the firmonly has an incentive to hire the one welfare worker, though they may of coursechoose to hire more than one welfare worker.10. A small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 50 cookies per day, the cost of the average worker is $64 per day, and the price of a cookie is $1. Is the cookie company maximizing its profit? Explain.The marginal product of labor is 50 (cookies per day) and the price per cookie is 1($ per cookie) so the marginal revenue product is $50/day. Since this is less thanthe wage of $64 per day the cookie company is not maximizing profit. They areemploying too much labor since the cost of labor is greater than the benefit oflabor at the margin, and are therefore producing too many cookies.11. A firm uses both labor and machines in production. Explain why an increase in the average wage rate causes both a movement along the labor demand curve and a shift of the curve.An increase in the wage rate causes an upward movement along the labordemand curve. For any given marginal revenue product curve, the firm will findthat they want to hire fewer workers when the wage increases (an upwardmovement). However, when the wage increases the marginal cost will increasewhich will reduce desired output. When output falls, the firm will not need asmany machines and the marginal product of labor curve will shift to the left,assuming machines and labor are complementary. This will also reduce thedemand for labor.1. Suppose that the wage rate is $16 per hour, and the price of the product is $2. Values for output and labor are in units per hour.q L0 020 135 247 357 465 570 6a.Find the profit-maximizing quantity of labor.From the information given above, calculate the marginal product of labor, theextra output produced by hiring one more unit of labor, and then multiply by priceto get the marginal revenue product of labor. To find the profit-maximizingquantity of labor, use the rule that the firm wants to hire labor only as long as themarginal revenue product of labor is greater than the nominal wage, or up to thepoint where the marginal revenue product of labor is equal to the nominal wage.From the table below, the firm will hire 5 units of labor.b.Suppose that the price of the product remains at $2 but that the wage rate increasesto $21. Find the new profit-maximizing quantity of labor.The above table does not change for this part of the problem. However, the firmno longer wants to hire 5 units of labor because the benefit of the 5th unit ($16 perhour) is less than the cost of the 5th unit ($21 per hour). The firm would only hire3 units of labor per hour since in this case the benefit still exceeds the cost at themargin. The firm would stick with 3 units instead of 4 unless fractional units arepossible. At L=4 the cost is greater than the benefit so you lose profit by hiringthe 4th unit of labor.c.Suppose the price of the product increases to $3 and the wage remains at $16 perhour. Find the new profit-maximizing quantity of labor.A change in the price of the product will not change the marginal product of labor,but it will change the marginal revenue product of labor. The new marginalrevenue product of labor is given in the table below. The firm will still want tohire 5 units of labor, as in part a above. It will not hire the 6th unit because theextra benefit is less than the extra cost. Profit will be greater than in part a.d.Suppose that the price of the product remains at $2 and the wage remains at $16, butthere is a technological breakthrough that increases output by 25% for any given level of labor. Find the new profit-maximizing quantity of labor.The technological breakthrough changes the number of units of output producedby a given number of units of labor, and hence changes the marginal product andthe marginal revenue product of labor. The new output values are found bymultiplying the old values by 1.25. This new information is given in the tablebelow. The firm will still choose to hire 5 units of labor. Profit will be greaterthan in part a.2. Assume that workers whose incomes are less than $10,000 currently pay no federal income taxes. Suppose a new government program guarantees each worker $5,000, whether or not he or she earns any income. For all earned income up to $10,000, the worker must pay a 50-percent tax. Draw the budget line facing the workers under this new program. How is the program likely to affect the labor supply curve of workers?The budget line for workers under this program is a straight line at $5,000. This lineis shown in the figure and table below. Workers earn $5,000 whether they work ornot. If workers work only to earn income, i.e., there are no other benefits such as“getting out of the house”or “gaining experience,”there is no incentive towork under the new program. Only wages yielding incomes greater than $10,000will result in a positive labor supply.Figure 14.2Income After TaxIncome GovernmentSubsidyTotalIncome0 0 5,000 $5,000$1,000 500 4,500 5,0002,000 1,000 4,000 5,0003,000 1,500 3,500 5,0004,000 2,000 3,000 5,0005,000 2,500 2,500 5,0006,000 3,000 2,000 5,0007,000 3,500 1,500 5,0008,000 4,000 1,000 5,0009,000 4,500 500 5,00010,000 5,000 0 5,0003. Using your knowledge of marginal revenue product, explain the following:a. A famous tennis star is paid $100,000 for appearing in a 30-second televisioncommercial. The actor who plays his doubles partner is paid $500.Marginal revenue product of labor, MRP L, is equal to marginal revenue from anincremental unit of output multiplied by the marginal product from an incrementalunit of labor, or in other words, the extra revenue generated by having the tennisstar appear in the ad. The famous tennis star is able to help increase revenues farmore than the actor, so he is paid much more than the actor. The wage of theactor is determined by the supply and demand of actors willing to play tennis withtennis stars.b. The president of an ailing savings and loan is paid not to stay in his job for the last twoyears of his contract.The marginal revenue product of the president of the ailing savings and loan is likelyto be negative and therefore, the savings and loan is better off by paying thepresident not to show up. They have calculated that they will lose less (or gainmore) by paying the president off and hiring someone else.c. A jumbo jet carrying 400 passengers is priced higher than a 250-passenger model eventhough both aircraft cost the same to manufacture.The ability of the larger jet to generate more revenue increases its value to theairline, and therefore the airline is willing to pay more for it.4. The demands for the factors of production listed below have increased. What can you conclude about changes in the demand for the related consumer goods? If demands for the consumer goods remain unchanged, what other explanation is there for an increase in derived demands for these items?a. Computer memory chipsIn general, an increase in the demand for a good increases the demand for its factorinputs. The converse is not necessarily true; i.e., an increase in the demand forfactor inputs does not necessarily imply an increase in the demand for the finalproduct. The demand for an input may increase due to a change in the use ofother inputs in the production process. As the price of another input increases, itsdemand falls and the demand of substitutable inputs rises. In this case, the increasein the demand for computer memory chips must have been caused by an increase inthe demand for personal computers given that computer memory chips are usedonly in computers, and there are no substitutes for computer memory chips.b. Jet fuel for passenger planesWith an increase in the demand for jet travel, the demand for jet fuel will increase.There are no substitutes for jet fuel.c. Paper used for newsprintGiven the paper is being used to print newspapers then there must have been anincrease in the circulation of newspapers.d. Aluminum used for beverage cansWith an increase in demand for cold drinks in the summer, the seasonal demand foraluminum increases, so this is one possible explanation. Alternatively, if glass orplastic have become more expensive then this may affect the demand for aluminum.Finally, changes in the market for recycled aluminum may affect the demand fornew aluminum.5. Suppose there are two groups of workers, unionized and nonunionized. Congress passesa law that requires all workers to join the union. What do you expect to happen to the wage rates of formerly nonunionized workers? of those workers who were originally unionized? What have you assumed about the union’s behavior?In general, we expect that nonunionized workers are earning lower wages thanunionized workers. If all workers are forced to join the union, it would bereasonable to expect that the nonunionized workers will now receive higher wagesand the unionized workers will receive a wage that could go either way. There are acouple of items to consider. First, the union now has more monopoly power in thatthere are no nonunion workers to act as substitutes for union workers. This givesmore power to the union, which means higher wages can in general be negotiated.However, the union now has more members to satisfy. If wages are kept at a highlevel, there will be fewer jobs, and hence some previously nonunionized workersmay end up with no job. The union may wish to trade off some of the wage for aguarantee of more jobs. The average income of all workers will rise if labor demandis inelastic and will fall if labor demand is elastic.6. Suppose a firm’s production function is given by Q = 12L - L2, for L = 0 to 6, where L is labor input per day and Q is output per day. Derive and draw the firm’s demand for labor curve if the firm’s output sells for $10 in a competitive market. How many workers will the firm hire when the wage rate is $30 per day? $60 per day? (Hint: The marginal product of labor is 12 - 2L.)The demand for labor is given by the marginal revenue product of labor. This isequal to the product of marginal revenue and the marginal product of labor: MRP L =(MR)(MP L). In a competitive market, price is equal to marginal revenue, so MR = 10.We are given MP L = 12 - 2L (the slope of the production function).Figure 14.6Therefore, the MRP L = (10)(12 - 2L). The firm’s profit-maximizing quantity of laboroccurs where MRP L = w. If w = 30, then 30 = 120 - 20L at the optimum. Solving forL yields 4.5 hours per day. Similarly, if w = 60, solving for L yields 3 hours per day.7. The only legal employer of military soldiers in the United States is the federal government. If the government uses its monopsonistic position, what criteria will it employ when figuring how many soldiers to recruit? What happens if a mandatory draft is implemented?Acting as a monopsonist in hiring soldiers, the federal government would hiresoldiers until the marginal value of the last soldier is equal to his or her pay. Thereare two implications of the government’s monopsony power: fewer soldiers arehired, and they are paid less than their marginal product. When a mandatory draftis implemented, even fewer professional soldiers are hired. Wages for volunteersoldiers fall, pushed down by the fact that wages of the draftees can be very low.8. The demand for labor by an industry is given by the curve L = 1200 - 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. Whatis the equilibrium wage rate and quantity of labor hired? What is the economic rent earned by workers?The equilibrium wage rate is determined where quantity of labor supplied is equal tothe quantity of labor demanded:20w = 1,200 - 10w, or w = $40.Substituting into either the labor supply or labor demand equations, we find theequilibrium quantity of labor is 800:L= (20)(40) = 800,SandL D = 1,200 - (10)(40) = 800.Economic rent is the summation of the difference between the equilibrium wage andthe wage given by the labor supply curve. Here, it is the area above the laborsupply curve up to L = 800 and below the equilibrium wage. This triangle’s area is(0.5)(800)($40) = $16,000.9. This exercise is a continuation of Exercise 8. Suppose now that the only labor available is controlled by a monopolistic labor union that wishes to maximize the rent earned by union members. What will be the quantity of labor employed and the wage rate? How does your answer compare with your answer to Exercise 8? Discuss. (Hint: The union’s marginal revenue curve is given by L = 1200 - 20w.)Recall that the monopolist chooses output by setting marginal revenue equal to themarginal cost of supplying one more unit of output, as opposed to the competitivefirm which chooses output by setting price equal to marginal cost, or in other wordsproducing where supply intersects demand. The monopolistic labor union acts inthe same way. To maximize rent in this case, the union will choose the number ofworkers hired so that the marginal revenue to the union (the additional wagesearned) is equal to the extra cost of inducing the worker to work. This involveschoosing the quantity of labor at the point where the marginal revenue curvecrosses the supply curve of labor. Note that the marginal revenue curve has twicethe slope of the labor demand curve. Marginal revenue is less than the wage,because when more workers are hired, all workers receive a lower wage.Setting the marginal revenue curve equal to the supply curve for labor, we find:1200 - 20w = 20w, or w* = 30.At w*, we may determine the number of workers who are willing to work bysubstituting w* into the labor supply equation:L * = (20)(30) = 600.Therefore, if the union wants to maximize the rent that the union members earn, theunion should limit employment to 600 members.To determine the wage the members will earn, substitute L * into the labor demandequation:600 = 1,200 - 10w , or w = 60.The total rent the employed union members will receive is equal to:Rent = (60 - 30)(600) + (0.5)(30)(600) = $27,000.Notice that the wage is higher and the number of workers employed is lower than in Exercise (8).*10. A firm uses a single input, labor, to produce output q according to the production function. The commodity sells for $150 per unit and the wage rate is $75 per hour.a. Find the profit-maximizing quantity of L.There are two (equivalent) methods of solving this problem. Most generally,define the profit function, where revenues and costs are expressed in terms of theinput, calculate the first order necessary condition (the first derivative of the profitfunction), and solve for the optimal quantity of the input. Alternatively, use therule that the firm will hire labor up until the point where the marginal revenueproduct (p*MP L ) equals the wage rate. Using the first method:π=TR -TC =pq -wLπ=150*8*L 12-75L∂π∂L=600L -12-75=0L =64.b. Find the profit-maximizing quantity of q.From part a, the profit maximizing quantity of labor is 64 so substitute thisquantity of labor into the production function to find q =8L 12=8*64=64. c. What is the maximum profit?Profit is total revenue minus total cost or π=150*64-75*64=4800.d. Suppose now that the firm is taxed $30 per unit of output and the wage rate issubsidized at a rate of $15 per hour. Assume the firm is a price taker, so that theprice of the product remains at $150. Find the new profit-maximizing levels of L, q, and profit.After the $30 tax per unit of output is paid, the firm receives 150-30=$120 per unitof output sold. This is the relevant price for the profit maximizing decision. The input cost is now 75-15=$60 per unit labor after the subsidy is received. The profit maximizing values can be found as in parts a-c above:TR-TC=pq-wLp=120*8*L12-60L¶p¶L=480L-12-60=0L=64q=64p=3840.e.Now suppose that the firm is required to pay a 20% tax on its profits. Find the newprofit-maximizing levels of L, q, and profit.The profit maximizing values can be found as in parts a-c above, only here profit is80% of total revenue minus total cost.π=.8(TR-TC)=.8(pq-wL)π=.8(150*8*L12-75L)∂π∂L=480L-12-60=0L=64q=64π=3840.。
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Microeconomics - Testbank 1 (Hubbard/O'Brien) Chapter 14 Monopoly and Antitrust Policy1) A monopoly is a seller of a product:A) w ith many substitutes.B) without a close substitute.C) w ith a perfectly inelastic demand.D) w ithout a a well-defined demand curve.Answer: BDiff: 1 Page Ref: 4442) A monopolist is a seller who:A) h as to consider the actions of other sellers.B) i s small relative to the market.C) c an ignore the threat of competition from other firms.D) a ll of the above.Answer: CDiff: 2 Page Ref: 4453) T he demand curve for the monopolist's product is:A) t he market demand for the product.B) m ore elastic than the market demand for the product.C) m ore inelastic than the market demand for the product.D) u ndefined.Answer: ADiff: 2 Page Ref: 4514) T o sell more output, the monopolist:A) o nly has to produce more.B) h as to lower the product's price.C) m ust lower production costs.D) h as to advertise the product extensively.Answer: BDiff: 2 Page Ref: 4525) T o keep a monopoly a firm must have:A) a perfectly inelastic demand.B) a n insurmountable barrier to entry.C) m arginal revenue equal to demand.D) a ll of the above.Answer: BDiff: 2 Page Ref: 4456) A local electricity-generating company has a monopoly that is protected by a barrier to entrythat takes the form of:A) c ontrol of a key raw material.B) n etwork externalities.C) e conomies of scale.D) n one of the above.Answer: CDiff: 2 Page Ref: 4507) A patent or copyright is a barrier to entry based on:A) o wnership of a key necessary raw material.B) l arge economies of scale as output increases.C) g overnment action to protect one producer.D) w idespread network externalities in supply of the good or service.Answer: CDiff: 2 Page Ref: 4458) A public franchise is:A) o wnership of a key necessary raw material.B) g overnment ownership and operation of a legal monopoly.C) g overnment designation that a private firm is the only legal producer of a good orservice.D) a n unregulated monopoly necessary for the public good.Answer: CDiff: 2 Page Ref: 4459) A public enterprise is:A) a ny private business that is not-for-profit.B) g overnment ownership and operation of a legal monopoly.C) g overnment designation that a private firm is the only legal producer of a good orservice.D) a n unregulated monopoly necessary for the public good.Answer: BDiff: 2 Page Ref: 44510) A United States government patent lasts:A) f orever.B) 50 years.C) 20 years.D) 7 years.Answer: CDiff: 2 Page Ref: 44611) G overnments grant patents to encourage:A) r esearch and development on new products.B) c ompetition.C) l ow prices.D) a ll of the above.Answer: ADiff: 2 Page Ref: 44612) G overnments grant patents to:A) c ompensate firms for research and development costs.B) e ncourage competition.C) e ncourage low prices.D) a ll of the above.Answer: ADiff: 2 Page Ref: 44613) P atent protection is of vital importance for:A) f urniture producers.B) s oftware firms.C) p harmaceutical firms.D) a uto makers.Answer: CDiff: 2 Page Ref: 44614) O wnership of a key resource is important in:A) a luminum production.B) n ickel production.C) p rofession sports.D) a ll of these.Answer: DDiff: 1 Page Ref: 44715) A network externality is:A) h aving a network of suppliers and buyers for a good or service.B) h aving lobbyists to advocate a public franchise.C) a good or service whose usefulness increases with the number of people using it.D) a good or service that requires connection to a network for it to be useful.Answer: CDiff: 2 Page Ref: 44816) A virtuous cycle is:A) u sing lobbyists to petition Congress to grant a public franchise.B) u sing monopoly profits to create new products for additional monopoly profits.C) a ttracting enough buyers initially to increase a product's usefulness to attract morebuyers.D) a ttracting enough sales to gain economies of scale.Answer: CDiff: 2 Page Ref: 44917) F or a natural monopoly to exist:A) a firm must continually buy up rivals.B) a firm's long run average cost curve must exhibit diseconomies of scale.C) a firm's long run average cost curve must exhibit economies of scale.D) a firm must have a patent.Answer: CDiff: 2 Page Ref: 44918) A natural monopoly is characterized by:A) l arge marginal costs relative to fixed costs.B) s mall fixed costs relative to variable costs.C) l arge fixed costs relative to variable costs.D) f ixed costs that are equal to variable costs.Answer: CDiff: 2 Page Ref: 45019) A monopolist's profit maximizing price and output is:A) w here average total cost are smallest.B) w here total costs are the smallest relative to price.C) w here marginal revenue equals marginal cost and charging the price on marketdemand for that output.D) w here price is as high as possible.Answer: CDiff: 3 Page Ref: 45320) A monopoly:A) a lways earns a profit.B) i s a price taker.C) m ust lower price to sell more of its product.D) a ll of the above.Answer: CDiff: 2 Page Ref: 45221) I f a monopolist's price is $50 a unit and its marginal cost is $25, then:A) t o maximize profit the firm should increase output.B) t o maximize profit the firm should decrease output.C) t o maximize profit the firm should continue to produce the output it is producing.D) n ot enough information is given to say say what the firm should do to maximize profit.Answer: DDiff: 3 Page Ref: 45322) I f a monopolist's marginal revenue is $35 a unit and its marginal cost is $25, then:A) t o maximize profit the firm should increase output.B) t o maximize profit the firm should decrease output.C) t o maximize profit the firm should continue to produce the output it is producing.D) n ot enough information is given to say say what the firm should do to maximize profit.Answer: ADiff: 2 Page Ref: 45323) I f a monopolist's marginal revenue is $15 a unit and its marginal cost is $25, then:A) t o maximize profit the firm should increase output.B) t o maximize profit the firm should decrease output.C) t o maximize profit the firm should continue to produce the output it is producing.D) n ot enough information is given to say say what the firm should do to maximize profit.Answer: BDiff: 2 Page Ref: 45324) I f a monopolist's marginal revenue is $25 a unit and its marginal cost is $25, then:A) t o maximize profit the firm should increase output.B) t o maximize profit the firm should decrease output.C) t o maximize profit the firm should continue to produce the output it is producing.D) n ot enough information is given to say say what the firm should do to maximize profit.Answer: CDiff: 2 Page Ref: 45325) I f a monopolist's price is $50 at the output where marginal revenue equals marginal cost andaverage total cost is $43, then:A) t he firms average profit is $50.B) t he firms average profit is $43.C) t he firms average profit is $7.D) N ot enough information is given to answer the question.Answer: CDiff: 2 Page Ref: 45426) I f a monopolist's price is $50 at 63 units of output and marginal revenue equals marginal costand average total cost equals $43, then the firm's total profit is:A) $3,150.B) $2,709.C) $441.D) $7.Answer: CDiff: 3 Page Ref: 454Refer to Figure 14.1 for the questions above.Figure 14.127) T o profit maximize the firm in figure 14.1 will produce:A) Q1.B) Q2.C) Q3.D) Q4.Answer: BDiff: 3 Page Ref: 45328) T he profit maximize price for the firm in figure 14.1 is:A) P1.B) P2.C) P3.D) P4.Answer: CDiff: 3 Page Ref: 45329) I f average total costs are ATC1, the firm in figure 14.1 will:A) s uffer a loss.B) b reak even.C) m ake a profit.D) f ace competition.Answer: CDiff: 3 Page Ref: 45330) I f average total costs are ATC2, the firm in figure 14.1 will:A) s uffer a loss.B) b reak even.C) m ake a profit.D) f ace competition.Answer: BDiff: 3 Page Ref: 45331) I f average total costs are ATC3, the firm in figure 14.1 will:A) s uffer a loss.B) b reak even.C) m ake a profit.D) f ace competition.Answer: ADiff: 3 Page Ref: 45332) I n figure 14.1, the difference between the monopoly output and the competitive output is:A) Q2-Q1.B) Q3-Q1.C) Q3-Q2.D) Q4-Q2.Answer: CDiff: 3 Page Ref: 45633) E conomic efficiency in a market occurs when:A) c onsumer surplus is maximized.B) p roducer surplus is maximized.C) c onsumer surplus plus producer surplus is maximized.D) p rice is as low as possible.Answer: CDiff: 2 Page Ref: 45734) A profit maximizing monopolist's price is:A) e qual to what the price would be if the mononoplist's industry were competitive.B) less than what the price would be if the mononoplist's industry were competitive.C) g reater than what the price would be if the mononoplist's industry were competitive.D) n ot consistently related to price if the market were competitive.Answer: CDiff: 2 Page Ref: 45635) O utput under a monopoly is:A) e qual to what output would be if the industry were competitive.B) l ess than what output would be if the industry were competitive.C) g reater than what output would be if the industry were competitive.D) h as no consistent relationship to what output would be if the industry were competitive.Answer: BDiff: 2 Page Ref: 45636) C ompared to perfect competition, under monopoly:A) c onsumer surplus is unchanged because price and output is the same.B) c onsumer surplus is decreased because price is higher and output is lower.C) c onsumer surplus is increased because price is higher and output is the same.D) c onsumer surplus is eliminated.Answer: BDiff: 2 Page Ref: 45737) C ompared to perfect competition, a monopoly:A) i ncreases consumer surplus.B) c auses a deadweight welfare loss.C) i ncreases total surplus.D) a ll of the above.Answer: BDiff: 2 Page Ref: 45738) C ompared to perfect competition, with monopoly:A) c onsumer surplus is reduced.B) o utput is reduced.C) t otal surplus is reduced.D) a ll of the above.Answer: DDiff: 2 Page Ref: 45739) R elative to a perfectly competitive market, monopoly result in:A) a gain in producer surplus is equal to the gain in consumer surplus.B) a gain in producer surplus is equal to the loss in consumer surplus.C) a gain in producer surplus is less than the loss in consumer surplus.D) N one of these occur.Answer: CDiff: 2 Page Ref: 45740) M arket power is:A) c onsumers ability to determine what is produced or consumer sovereignty.B) a firm being able to advertise its product and succeed in selling more output.C) t he ability of a firm to sell at a lower price than rival sellers.D) t he ability of a firm to charge a price higher than marginal cost.Answer: DDiff: 2 Page Ref: 45741) T he type of firms that do not have market power are:A) p erfectly competitive.B) m onopolistically competitive.C) o ligopoly.D) m onopolies.Answer: ADiff: 1 Page Ref: 45742) M arket power in the U.S. causes:A) m any people to be poor.B) a small loss of economic efficiency.C) g reater pollution than there otherwise would be.D) m any firms to be driven out of business.Answer: BDiff: 2 Page Ref: 45843) T he size of a deadweight loss in a market is reduced by:A) g overnment legislating a ceiling price.B) g overnment legislating a price floor.C) m arket price being close to marginal cost.D) a ll of the above.Answer: CDiff: 2 Page Ref: 45844) A market economy benefits from market power:A) i f the majority of the population are entrepreneurs.B) i f firms with market power do research and development with the profits earned.C) i f market power gets so bad the government creates public enterprises.D) u nder no circumstances.Answer: BDiff: 2 Page Ref: 45845) I f a firm has market power and has earned monopoly profits for some time, JosephSchumpeter would predict:A) t he government will eventually have to control these firms.B) t he public will get fed up and refuse to buy those products.C) n ew products will drive older products and firms with market power out of the market.D) a ll of the above.Answer: CDiff: 2 Page Ref: 45846) T he first federal law passed to control monopolies was the:A) C ellar-Kefauver Act.B) C layton Act.C) F ederal Trade Commission Act.D) S herman Act.Answer: DDiff: 1 Page Ref: 45947) T he"trust" in antitrust refers to:A) c itizens who do not trust the government to deal with market power.B) a board of trustees that had collusive control over different companies.C) t he type of governmental control in antitrust laws.D) t he trust collusive firms have that each member will live by the agreement.Answer: BDiff: 2 Page Ref: 45948) T he Sherman Act prohibited:A) m arginal cost pricing.B) s etting price above marginal cost.C) c ollusive price agreements among rival sellers.D) s elling below average total cost.Answer: CDiff: 1 Page Ref: 45949) S hortly after the passage of the Sherman Act and a narrow Supreme Court interpretation ofthe Act:A) s etting price equal to marginal cost became the only way to avoid prosecution.B) a ll industries became perfectly competitive.C) a wave of mergers took place.D) t echnological change slowed.Answer: CDiff: 2 Page Ref: 45950) T he Clayton Act prohibited:A) a ll vertical mergers.B) a ll horizontal mergers.C) a ny merger if its effect was to substantially lessen competition or create a monopoly.D) a ll conglomerate mergers.Answer: CDiff: 1 Page Ref: 45951) T he Federal Trade Commission Act:A) g ave the FTC full power to regulate mergers.B) c losed the loopholes in the Sherman and Clayton Acts.C) d ivided enforcement of antitrust laws between the FTC and the Department of Justice.D) p rohibited charging buyers different prices if the result would reduce competition.Answer: CDiff: 2 Page Ref: 45952) I f Ford Motor Company and General Motors were to merge, it would be an example of a:A) v ertical merger.B) h orizontal merger.C) c onglomerate merger.D) n one of the above.Answer: BDiff: 1 Page Ref: 46053) I f U.S. Steel and General Motors merged, this would be an example of a:A) v ertical merger.B) h orizontal merger.C) c onglomerate merger.D) n one of the above.Answer: ADiff: 1 Page Ref: 46054) W hen a proposed merger between two companies is being reviewed by the government, therelevant market is defined by:A) w hether or not there are close substitutes for the products of the two firms.B) h ow elastic the demand is for each firm's product.C) c ounting the number of firms that are producing the same product.D) h ow much advertising is done in the industry.Answer: ADiff: 2 Page Ref: 46255) A Herfindahl-Hirschman Index is calculated by:A) s umming the amount of sales by the four largest firms and dividing by total industrysales.B) d ividing the number of firms wanting to merge by the total number in the industry.C) s umming the squares of the market shares of each firm in the industry.D) s umming the advertising expenditure of the firms that want to merge by total industryadvertising expenditures.Answer: CDiff: 2 Page Ref: 46256) N atural monopolies in the United States are generally regulated by:A) F ederal Trade Commission.B) D epartment of Justice.C) l ocal or state regulatory commissions.D) t he Department of Commerce.Answer: CDiff: 1 Page Ref: 46457) I f a natural monopoly regulatory commission set a price where marginal cost is equal todemand:A) t he firm would earn monopoly profits.B) E conomic efficiency would not be achieved.C) t he firm would incur a loss.D) t he firm would break even.Answer: CDiff: 2 Page Ref: 464Refer to Figure 14.2 for the questions below.Figure 14.258) T he firm in figure 14.2 wants to produce:A) Q1.B) Q2.C) Q3.D) Q4.Answer: BDiff: 3 Page Ref: 46459) W here the firm in figure 14.2 wants to produce, the market clearing price is:A) P1.B) P2.C) P3.D) P4.Answer: CDiff: 3 Page Ref: 46460) T he most the firm in figure 14.2 can be regulated to produce is:A) Q1.B) Q2.C) Q3.D) Q4.Answer: CDiff: 3 Page Ref: 46461) I f the firm in figure 14.2 produces what it wants, it will:A) m ake a profit.B) s uffer a loss.C) b reak even.D) f ace entry.Answer: ADiff: 3 Page Ref: 46462) I f the firm in figure 14.2 is regulated to produce as much as possible, it will:A) m ake a profit.B) s uffer a loss.C) b reak even.D) f ace entry.Answer: CDiff: 3 Page Ref: 46463) A possible advantage of a horizontal merger for the economy is:A) t he merging firms could avoid losses.B) e conomies of scale and possibly lower prices.C) m ore competition in the industry.D) m ore corporate income tax revenue for the government.Answer: BDiff: 2 Page Ref: 46164) E conomic efficiency requires that a natural monopoly's price be:A) e qual to average total cost where it intersects demand.B) e qual to marginal cost where it intersects demand.C) e qual to average variable cost where it intersects demand.D) e qual to the price the natural monopolist wants.Answer: BDiff: 2 Page Ref: 46465) T he price strategy to regulate a natural monopoly to produce as much as possible is to setprice:A) e qual to average total cost where it intersects demand.B) e qual to marginal cost where it intersects demand.C) e qual to average variable cost where it intersects demand.D) e qual to the price the natural monopolist wants.Answer: ADiff: 2 Page Ref: 46466) W hat is a monopoly?Answer: A firm that is the only seller of a good or service with no close substitutes.Diff: 1 Page Ref: 44467) W hat is an example of a government barrier to entry?Answer: A patent or copyright.Diff: 1 Page Ref: 44568) W hat is a network externality barrier to entry?Answer: Where a good's demand depends on how many other consumers are using it.Diff: 2 Page Ref: 44869) W hat gives rise to a natural monopoly?Answer: Continuing economies of scale as a firm gets larger.Diff: 2 Page Ref: 44970) W hat is a public franchise?Answer: When a government allows only one legal provider of a good or service.Diff: 2 Page Ref: 44771) W hat is a public enterprise?Answer: When a government provides certain services directly to consumers.Diff: 2 Page Ref: 44772) H ow does an unregulated monopoly choose the profit maximizing output?Answer: By producing where marginal revenue equals marginal cost.Diff: 2 Page Ref: 45373) H ow does marginal revenue and average revenue for a monopolist compare?Answer: Marginal revenue is less than price which is equal to average revenue.Diff: 2 Page Ref: 45274) I s a monopolist a price taker like a perfectly competitive firm and if not, what is it?Answer: No, a monopoly is a price maker not a price taker.Diff: 2 Page Ref: 45675) W hat does a monopolist have to do to sell more units of its product?Answer: lower the priceDiff: 5 Page Ref: 45376) W hat happens to monopoly revenue when a monopolist sells more units of its product?Answer: It is good that the monopolist sells more units, but it is bad that it receives less revenue from each unit than it would have received at the higher price.Diff: 2 Page Ref: 45277) I f a monopolist's marginal revenue is $15 and its marginal cost is $10, then what should thefirm do?Answer: Produce and sell more of its product.Diff: 2 Page Ref: 45378) H ow does an unregulated profit maximizing monopoly affect economic efficiency comparedto a perfectly competitive industry?Answer: Economic efficiency is reduced because there is deadweight loss.Diff: 2 Page Ref: 45679) H ow do the price and quantity of a monopoly compare to that of a perfectly competitiveindustry?Answer: Monopolists sells a smaller quantity and the price is higher than with competition..Diff: 2 Page Ref: 45680) W hat are the two ways the government controls monopolies?Answer: Antitrust laws and local or state regulation of natural monopolies.Diff: 2 Page Ref: 45881) W hen did antitrust control begin?Answer: When the Sherman Act was passed in 1890.Diff: 1 Page Ref: 45982) W hat is a horizontal merger?Answer: A merger between firms producing in the same industry.Diff: 2 Page Ref: 46083) W hat is a vertical merger?Answer: A merger between firms at different stages of production.Diff: 2 Page Ref: 46084) I s competition always good for the economy and explain why or why not?Answer: In a natural monopoly industry, competition would result in higher costs and higher prices meaning competition may not always be good for the economy.Diff: 2 Page Ref: 46485) W hat are the rules for profit maximization for a monopoly?Answer: Produce the output where marginal revenue equals marginal cost or the last whole unit of output where marginal revenue is still greater than marginal cost and look atdemand to determine what price to charge.Diff: 2 Page Ref: 455。