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Running head: ECONOMICS Economics Name of the university Name of the student Author note
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ECONOMICS Answer 1 QTRMRAFCAVCATCTCMCPROFITVCFC 001000100 11151003513513535-2035100 221095503585170354070100 32857533.3335 68.3333 32053580105100 43405525356024035100140100 53753520355527535100175100 63901516.6735 51.6666 73103580210100 7385-514.2935 49.2857 13453540245100 8360-2512.53547.538035-20280100 9315-4511.1135 46.1111 141535-100315100 10250-6510354545035-200350100 11165-859.0935 44.0909 148535-320385100 a. The total fixed cost of the firm is 100 b. Provided in the above table c.
ECONOMICS 01234567891011 -400 -300 -200 -100 0 100 200 300 400 500 600 TRMRAFCAVCATC TCMCPROFITVCFC Answer 2 LMPMRPQTRTCMFCPROFIT 12020020200110 6.11111 190 218180383802206.875160 31616054540330 7.85714 3210 41414068680440 9.16666 7240 5121208080055011250 6101009090066013.75240 788098980770 18.3333 3210 8660104104088027.5160 944010810809905590 1022011011001100100 b. Optimal level of employment is 5 where maximum profit is 250 c.
ECONOMICS 12345678910 0 200 400 600 800 1000 1200 MPMRPQTR TCMFCPROFIT Answer 3 LMPMRPTPTRWTLCMFC 1202002020020203 2181803838040805 31616054540601807 41414068680803209 5121208080010050011 6101009090012072013 78809898014098015 86601041040160128017 94401081080180162019 102201101100200200010 The optimal level of output is at 5
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ECONOMICS 12345678910 0 500 1000 1500 2000 2500 MPMRPTPTRWTLCMFC Answer 4 LMPWMRPL 12020200 21840180 31660160 41480140 512100120 610120100 7814080 8616060 9418040 10220020 a. The employment level is 100 and the wage rate is 5 since till that point MRPL is greater than W.
ECONOMICS Answer 5 The unemployment benefits have both advantages as well as disadvantage in the society. However, unemployment benefits can lead to destruction of jobs. When unemployment benefits are extended for too long, people tend to stay unemployed and thus it does not solve the problem of unemployment(Bade and Parkin 2015). The unemployment benefit also creates a reservation wage, below which no employees will want to work. It also negatively affects the stability of the working careers. Answer 6 Therearebasicallysevencausesofunemploymentwhichleadstoeithercyclical unemployment, frictional unemployment of the structural unemployment. One of the main cause of the unemployment is the increase in the growth of population. Unemployment also resultswhenemployeesvoluntarilyleavetheworkforcewhichtendstofrictional unemployment(Bauer 2018). Another reason of unemployment is globalization which leads to change in the pattern of trade where many people lost jobs as production shifted to lower costcountries.Largenumberoftechnologicaladvamacementsalsoresultedtothe unemployment. computers and the other advanced technologies can perform more complex tasks in a matter of time which does not require humans. Answer 7 Implicit cost The implicit cost is the opportunity cost which is equal to what a firm should be giving up for using a factor of production foe which it already owns. It can also be termed as the cost which has already occurred and are not necessarily reported as a separate expense.It is therefore, the opportunity cost which arises when a company uses the internal resources towards a project without any explicit compensation for utilizing its resources.
ECONOMICS Efficiency wage The idea of efficiency wage states that rise in the wages will be leading to rise in the productivity of labor. The efficiency wage are higher than the market wage paid for encouraging higher output and raising the morale of the worker. Insider- outsider theory The insider- outsider theory is a theory of labor economics which explains about the behavior of the firms, national welfare and negotiations of wage which are affected by a group in a more privileged position. Answer 8 Efficiency is concerned with the optimal production and allocation of resource while equity is concerned on how resources are distributed throughout the society. Therefore, the rate of union membership and the degree of union activism are higher in Canada than in the United State Answer 9 The labor union help in increasing efficiency though it plays role in raising wages. The union workers helps in earning higher wages and can also increase the consumer demand. It reduces inefficient level of income inequality(Baumol and Blinder 2015). It is known to fight against discrimination, reduce employee turnover rates, contributes more in income taxes. In this way, the labor union helps in increasing efficiency. Answer 10 It is true that trade unions help in increasing the wages in the economy. However, it cannot increase employment and efficiency in the economy. Therefore, it can be said that trade unions can cause inefficiency and unemployment in the economy(Bade and Parkin 2015).
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ECONOMICS The trade union will be pushing the wages above the equilibrium wage rate and this rise in the real wage lead to unemployment. Trade unions can increase wage but those outside of the union will be facing unemployment.
ECONOMICS Reference list Bade, R. and Parkin, M., 2015.Foundations of microeconomics. Pearson. Bauer, M.J.R., 2018. Principles of microeconomics. Baumol, W.J. and Blinder, A.S., 2015.Microeconomics: Principles and policy. Nelson Education. Cowell, F., 2018.Microeconomics: principles and analysis. Oxford University Press. Fine, B., 2016. Microeconomics.University of Chicago Press Economics Books. Iossa, E. and Martimort, D., 2015. The simple microeconomics of publicāprivate partnerships. Journal of Public Economic Theory,17(1), pp.4-48. Khalil, F., Lawarree, J. and Scott, T.J., 2018. Applied Microeconomics. Kreps, D.M., 2019.Microeconomics for managers. Princeton University Press.