Unit 5: Factor Markets

GreenGrow Farms operates in a perfectly competitive output market where organic tomatoes sell for [math]60 per day. The table below shows the relationship between the number of workers and total output.

QuartzMin is the only employer in a remote mining town. As a monopsony, it faces the upward-sloping labor supply schedule shown below. Each worker produces output worth [math]110 for all workers within the relevant range).

TechPro manufactures circuit boards using two inputs: labor and capital. The firm currently employs 10 workers at a wage of [math]40 per hour. At the current input levels: - Marginal product of labor (MP_L) = 8 circuit boards per hour - Marginal prod

Riverside Hospital operates in a city where the market for registered nurses is perfectly competitive. Recently, a new state law requires all hospitals to maintain higher nurse-to-patient ratios. At the same time, a nearby nursing school has doubled

TimberCo produces lumber used by home builders. The housing market has been experiencing a significant boom, with housing prices rising 20% over the past year. TimberCo buys logs from independent loggers in a competitive market and sells lumber to bu

SilverPeak Mining is the only employer in a remote mountain town. The mine workers are considering forming a union to negotiate for higher wages. Currently, without a union, SilverPeak operates as a monopsony, paying workers [math]22 per hour. The wa