1. What is the relationship between the marginal revenue product (MRP) and the demand curve for labor?
2. Assume the labor market for loggers is perfectly competitive. How would each of the following events influence the wage rate loggers are paid?
a. Consumers boycott products made with wood.
b. Loggers form a union that requires longer apprenticeships, charges high fees, and uses other devices designed to reduce union membership.
2007-03-22 09:20:44 · 2 answers · asked by mohotbabe 2 in Social Science ➔ Economics
They are the same thing. MRP is based upon labor productivity and the value of the output. In doing this you simultaneously construct the labor demand curve since labor is a derived demand.
boycott leads to lower wages for logger--derived demand---less demand for output, less demand for input labor
exclusive unionism model for logger would result in higher wages for logger via tighter control over supply of workers with these skills on the market
2007-03-22 15:53:06 · answer #1 · answered by econgal 5 · 0⤊ 0⤋
here is #2
a. wages decrease
b. wages increase
2007-03-22 10:04:28 · answer #2 · answered by Santa Barbara 7 · 0⤊ 0⤋