The above figure represents the market for teenage workers at fast-food restaurants in Kansas City
a) What is the equilibrium wage rate and employment?
b) Describe the market at a wage rate of $6 per hour.
c) Describe the market at a wage rate of $12 an hour.
d) How would an increase in the number of young, married college graduates, who tend to eat at fast-food restaurants, affect the figure, the equilibrium wage rate, and employment?
a) The equilibrium wage rate is $8 an hour and the equilibrium quantity of employment is 4,000 workers.
b) If the wage rate is $6 an hour, the quantity of labor supplied is less than the quantity of labor demanded. There is a shortage in the market.
c) If the wage rate is $12 an hour, the quantity of labor supplied is greater than the quantity of labor demanded. There is a surplus in the market.
d) An increase in the number of people who eat in fast-food restaurants will increase the demand for workers at fast-food restaurants. As a result the demand for labor curve will shift rightward and the equilibrium wage rate and equilibrium quantity of employment will both increase.
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The deadweight loss generated by a perfect-price-discriminating monopoly
A) equals the deadweight loss of a single-price monopoly. B) is greater than the deadweight loss of a single-price monopoly. C) equals zero. D) equals the sum of all lost consumer surplus.
What is the marginal cost of producing the third unit?
a. 60 b. 70 c. 90 d. 110