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7HURM006W: Draw and describe the effects of a decrease in the market price of dishwasher machines on the equilibrium market price: Human Resource Management and the Business Context Assignment, UOW, UK
| University | University of Westminster (UOW) |
| Subject | 7HURM006W: Human Resource |
- Draw and describe the effects of a decrease in the market price of dishwasher machines on the equilibrium market price and output in the weekly market for cartons of dishwasher tablets in the UK.
- Draw and describe the effects of an increase in the market wage rate of bricklayers on the equilibrium market price and output in the annual market for new houses in Germany.
- Following recent proposals to change the prices of two goods supplied by your organization, a market research company has provided senior management with the following information:
- Based on the information above and showing your calculations, what is the price elasticity of demand for good A?
- Based on the information above and showing your calculations, what is the price elasticity of demand for good B?
- Discuss the possible reasons for the different values of the price elasticity of demand for goods A and B.
- Based on the estimated effects on total revenue per week for goods A and B, and showing your calculations, discuss whether you would agree to either of the proposed price changes.
- Evaluate whether Porter’s Five Forces Model contributes to understanding competition in goods markets, given the traditional microeconomic theories of different market structures, such as oligopoly or perfect competition.
- Your organization operates in a perfectly competitive goods and labor market. The figures in the table below are hourly and the current market price of the good is £2.19 per unit.
- Add four more columns to the table and calculate the total cost of labor, the marginal cost of labor, the total revenue product of labor, and the marginal revenue product of labor for each of the levels of employment. Insert the completed table in your Word document.
- What is the profit-maximizing level of employment according to the marginal cost of labor and the marginal revenue product of labor?
- Showing your calculations, if the organization faces other (fixed) costs of £0.92 per hour, how much hourly profit will be generated at the profit-maximizing level of employment?
- Assuming ceteris paribus, repeat part a) using a new market price of £2.69 per unit.
- At the new market price of £2.69 per unit, what happens to the profit-maximizing level of employment according to the marginal cost of labor and the marginal revenue product of labor?
- Assuming ceteris paribus and with the original market price of £2.19 per unit, repeat part a) using a new wage rate of £13.15 per hour.
- At the original market price of £2.19 per unit and the new wage rate of £13.15 per hour, what happens to the profit-maximizing level of employment according to the marginal cost of labor and the marginal revenue product of labor?
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