# 经济代写|劳动经济学代写Labor Economics代考|ECO118

## 经济代写|劳动经济学代写Labor Economics代考|Maximizing Monopoly Profits

As explained earlier in footnote 2 and the surrounding text, product-market monopolies are subject to the market demand curve for their output, and they therefore do not take output price as given. They can expand their sales only by reducing product price, which means that their marginal revenue $(M R)$ from an extra unit of output is less than product price $(P)$. Using the general definition of marginal revenue product in equation (3.3a), and applying the usual profit-maximizing criteria outlined in equation (3.4) to a monopoly that searches for workers in a competitive lahor market (so that $M F_L=W$ ), the monopolist would hire workers until its marginal revenue product of labor $\left(M R P_L\right)$ equals the wage rate:
$$M R P_L=M R \cdot M P_L=W(3.9)$$
Now we can express the demand for labor in the short run in terms of the real wage by dividing equation (3.9) by the firm’s product price, $P$, to obtain

Since marginal revenue is always less than a monopoly’s product price, the ratio $M R / P$ in equation (3.10) is less than one. Therefore, the labor demand curve for a firm that has monopoly power in the output market will lie below and to the left of the labor demand curve for an otherwise identical firm that takes product price as given. Put another way, just as the level of profit-maximizing output is lower under monopoly than it is under competition, other things equal, so is the level of employment.

The wage rates that monopolies pay, however, are not necessarily different from competitive levels even though employment levels are. An employer with a productmarket monopoly may still be a very small part of the market for a particular kind of employee and thus be a price taker in the labor market. For example, a local utility company might have a product-market monopoly, but it would have to compete with all other firms to hire clerks and thus would have to pay the going wage.

## 经济代写|劳动经济学代写Labor Economics代考|Employment Subsidies as a Device to Help the Poor

The opposite of a payroll tax on employers is a government subsidy of employers’ payrolls. In Eigure 3.4, for example, if instead of taxing each hour of labor by $X$ the government paid the employer $X$, the market labor demand curve would shift upward by a vertical distance of $X$. This upward movement of the demand curve would create pressures to increase employment and the wages received by employees; as with a payroll tax, whether the eventual effects would be felt more on employment or on wage rates depends on the shape of the labor market supply curve.
(Students should test their understanding in this area by drawing labor demand curves that reflect a new payroll subsidy of $X$ per hour and then analyzing the effects on employment and employee wages with market supply curves that are, alternatively, upward-sloping and vertical. Hint: The outcomes should be those that would be obtained if demand curve $D_1$ in Figures $3.4$ and $3.5$ were shifted by the subsidy to curve $D_0$.)

Payroll subsidies to employers can take many forms. They can be in the form of cash payments, as implied by the above hypothetical example, or they can be in the form of tax credits. These credits might directly reduce a firm’s payroll-tax rate or they might reduce some other tax by an amount proportional to the number of labor hours hired; in either case, the credit has the effect of reducing the cost of hiring labor. Below, we first discuss programs that directly subsidize hiring, and then turn to the potential Hiring Subsidy Programs Programs that subsidize hiring can apply to a firm’s employment level, to any new employees hired after a certain date (even if they just replace workers who have left), or only to new hires that serve to increase the firm’s level of employment. Finally, subsidies can be either general or selective. A general subsidy is not conditional on the characteristics of the people hired, whereas a selective, or targeted, plan makes the subsidy conditional on hiring people from certain target groups (such as the disadvantaged).

## 经济代写|劳动经济学代写Labor Economics代考|Maximizing Monopoly Profits

$$M R P_L=M R \cdot M P_L=W(3.9)$$

## 经济代写|劳动经济学代写Labor Economics代考|Employment Subsidies as a Device to Help the Poor

（学生应该通过绘制反映新的工资补贴的劳动力需求曲线来测试他们对这一领域的理解。X每小时，然后使用向上倾斜和垂直的市场供给曲线分析对就业和雇员工资的影响。提示：结果应该是如果需求曲线会获得的结果D1在图中3.4和3.5美元在和r和sH一世F吨和db是吨H和s在bs一世d是吨○C在r在和D_0\$。）

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