The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 400 and Qd = 500 - 0.02W, where W is the annual wage of a coal miner and Q is the number of coal miners. What is the deadweight loss due to the monopsony in the coal miners market?
A. $27,778
B. $13,889
C. $41,667
D. $21,667
B. $13,889
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Suppose a deposit in New York earns 6 percent a year and a deposit in London earns 4 percent a year. Interest rate parity holds if the
A) U.S. dollar appreciates by 2 percent a year. B) U.S. dollar depreciates by 2 percent a year. C) U.K. pound depreciates by 2 percent a year. D) None of the above answers is correct because interest rate parity requires that the interest rates be the same in both countries.
What is "market signaling"?
What will be an ideal response?
If the government removes a binding price floor from a market, then the price paid by buyers will
a. increase, and the quantity exchanged will increase. b. increase, and the quantity exchanged will decrease. c. decrease, and the quantity exchanged will increase. d. decrease, and the quantity exchanged will decrease.
How many workers are willing and able to work at the optimal union wage rate in Figure 31.1?
A. 13. B. 10. C. 16. D. 24.