3,5,G SUBMIT 7. The efficioney wage lrypothesis enggests that Muhlple chaice que

Question

3,5,G SUBMIT 7. The efficioney wage lrypothesis enggests that Muhlple chaice questices Dacesion goestiens and Challenge qorstions wage rata is where tho demand for labour equals the supply of labour 8) efficieney wage rate is where the damand for labour is los than the supply of labour soma woruars will shirt,regardless of their wage rate, causing Q ) worters should be paid wage greater dianthe manut-clearing wapa inaficiency Tho demond for Inhour esave of a perfeetly competitive Birnu slopes downward leconse Al to soll more it has to reduce the price of its product 6) die marginal cost od labour increase there are decreasing returns to scale Di the marginal physical prodoct of fshour decresses 9. Which el the following workers would have the most elastic sepply DAl Doctors B) Shoop shearers Ci Shop assistants Di Nurses 10. A monopsonlst will amploy labour up to the polst wharo the cest of the last person eauployed Al equals their average revanus product B) is their wage. O ci equals their marginal revenus product. Di is oqual to the average cost of labour discussion questions 1. Anshyes the effect of a fall in the wage rate on the long-run demand for labour 2 Why do you thinat the propertion of employeos who srd trade unice members has been falling? )Wby may a firm pay its ishour more than necesfary to retain thom within the firm Tha wage rate a rm has to pay and tue outpt it can produce vary with the number ol workers, ss shown in the table below. (Ail figures ars hourty. Number of workers2 3 45 67 Wego rato (,(si/. 3 4 5 6 7 9 10 Tolal oatpat ITPP 1 2232 46 50 52 52 Assums that output salls at $2 par unit al Cojy the tebls and add additional rows for TC I , MC, TRP and MAP Put the figuree for MC end MRP in the spaces behwesn the columns

Explanation / Answer

Ans. This is an interesting question , Let's start answering it :

3) A part of this answer is in the question itself , Firms may give Above Average Wages to their Labor in order to retain them in the Business . Some other reasons are as follows :

5) Four Groups of Workers are as follows :

Among these four groups , Managerial Worker's Group and Engineer Worker's Group are paid the Highest Wages. They are paid Higher Wages because they are doing White Collar Jobs , their work includes specific knowledge and skills that are not easily acquired by all.

Among these four groups , Production unit workers and construction workers are paid less wages because they are Doing Blue Collar Work. Their work does not require any specific and deep knowledge which is difficult to acquire. However , some amount of skill is required in their work but that can be acquired easily. That's why they are paid less.

Important thing to note is that , Though there is huge disparity in the wages received by both the group of workers , but Work done by them is equally important for Every Organization.

6) The average gross weekly pay of full time women employees is only 79% of full time male workers in Australia because of Following Reasons :

A positive thing to note is that the Gender Wage Gap have lowered in recent years in Australia.

10) Let's see the Table First :

3

4

Now , we know that Total Cost of Labor = Number of Workers × Wages Rate . Thus we are able to calculate the Whole Column of Total Cost.

We know that Marginal Cost is increase in Total Cost when one more worker is employed. Thus

Marginal Cost of Labor = Present Total Cost of Labor - Preceding Total Cost of Labor . Using this we are able to calculate Marginal Cost of Labor.

Marginal Revenue Product is already given.

I hope you understood the answer. Do ask in Case of Doubts.

A Thumsup would be Highly Appreciated !!

Best of Luck !! Keep Chegging !!

Number of Workers Wage Rate Total Cost of Labor Marginal Cost of Labor Marginal Revenue Product 1 100 100 2 105 210 110 230

3

110 330 120 240

4

115 460 130 240 5 120 600 140 230 6 125 750 150 210 7 130 910 160 190 8 135 1080 170 170 9 140 1260 180 150 10 145 1450 190 130

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