1.a) “The firm’s demand schedule for labour is a negative function of the wage because, as the firm...

Question

1.a) “The firm’s demand schedule for labour is a negative function of the wage because, as the firm uses more labour, it has to utilize poorer-quality labour, and hence pays a lower wage.” True or false? Explain.b) What should happen to the pay of superstars if there is a technological change or increased globalization that enables the very best to reach a wider audience?c)Suppose that the government raises the minimum wage by 20 percent. Describe the four Hicks-Marshall laws of derived demand. Given these for laws of derived demand, analyze the conditions under which job loss among minimum wage workers in a specific industry would be the smallest.d) “Monopsonists are at a disadvantage relative to competitive buyer of labour, because, when the monopsonist wants to expand its workforce is has to raise wages, while the competitive buyer can get all the labour it wants at the going wage.” True or false? Explain

David · Accepted Answer

1. a) False, a firm’s demand schedule for labour is a negative function of the wage because as wage 
increases firms higher less units of labour (or firms demand for labour falls). 
2) The pay of the superstars will increase if there is a technological change or increased globalization 
that enables the very best to reach a wider audience because the demand for the superstar will 
increase.

1.a) “The firm’s demand schedule for labour is a negative function of the wage because, as the firm uses more labour, it has to utilize poorer-quality labour, and hence pays a lower wage.” True or...

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