econ exam

which of the following tactics is most associated with the demand enhancement union model

lobbying for increases in public expenditures on the product it is producing

other things equal, the monopsonistic employer will pay a

lower wage rate and hire fewer workers than will a purely competitive employer

when a monopolistically competitive firm is in long-run equilibrium

marginal revenue equals marginal cost and price equals average total cost

If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the:

marginal revenue product of the second worker is $20

monopolistically competitive firms

may realize either profits or losses in the short run but realize normal profits in the long run

the economic term for a firm that is the sole buyer in a market is

monopsonist

The demand curve of a monopolistically competitive producer is

more elastic than that of a pure monopolist but less elastic than that of a pure competition

the purely competitive employer of resource A will maximize the profits from A by equating the

price of A with the MRP of A

Critics of minimum-wage legislation argue that it:

reduces employment

when economists say that the demand for labor is a derived demand, they mean that it is

related to the demand for the product or service labor is producing

compensating differences in wages

reward workers differently based on differences in the desirability of jobs

a craft union attempts t increase wage rates by

shifting the labor supply curve to the left

assume that an appliance manufacturer is employing variable resources x and y in such amounts that the MRP's of the last units of X and Y employed are $100 and $60, respectively. Resource X can be hired at $50 per unit and resource Y at $20 per unit. The firm

should hire more of both X and Y

noncompeting groups of workers are the result

differences in the innate and acquired abilities of workers

the mutual interdependence that characterizes oligopoly arises because

each firm in an oligopoly depends on its own pricing strategy and that of its rivals

the marginal productivity theory of income distribution suggests that

each individual receives income based on his or her contribution to total output

the labor supply curve facing a purely competitive employer is blank, whereas the labor supply curve facing a monopsonist is blank

horizontal/ upsloping

which of the following statements concerning a monopolistically competitive industry is true

if there are short run losses firms will leave the industry and the demand curves of the remaining firms will shift to the left

marginal revenue product of labor refers to the

increase in total revenue resulting from hiring one more unit of labor

Advertising can enhance economic efficiency when it:

increases consumer awareness of substitute products

Suppose firms in a collusive oligopoly decide to establish their prices at a level that discourages new rivals from entering the industry. This is called:

limit pricing

as a general rule, oligopoly exists when the four-firm concentration ratio is

40 % or more

If a single large employer bargains with an inclusive union, the resulting labor market model can best be described as:

a bilateral market

oligopolistic industries are characterized by

a few dominant firms and substantial entry barriers.

unions might suppose a higher minimum wage because

a higher minimum wage makes less skilled workers less substitutable for union workers

in the short run, a profit-maximizing monopolistically competitive firm sets its price

above marginal cost

the economic inefficienes of monopolistic competition may be offset by the fact that

consumers have increased product variety

Unions often oppose increases in the prices of complementary inputs (for example, truck drivers may oppose increases in taxes on diesel fuel). They do this because increases in the prices of complementary inputs might:

decrease the demand for union labor through the output effect

Suppose an oligopolistic producer assumes its rivals will ignore a price increase but match a price cut. In this case the firm perceives its:

demand curve as kinked, being steeper below the going price than above

if an industrial union is formed to bargain with a monopsonistic employer, then in this labor market

employment may either increase or decrease

A simultaneous game is said to exist when

firms choose their strategies at the same time as their rivals.

the idea of efficiency wages is that

firms might get greater work effort by paying above-equilibrium wage rates.

an employer hiring in a competitive labor market should hire additional labor as long as

the MRP exceeds the wage rate

other things equal, if firms enter a monopolistically competitive industry

the demand curves facing existing firms would shift to the left

if a firm is hiring a certain type of labor user purely competitive conditions

the labor supply and marginal labor cost curves will coincide and be perfectly elastic

the relationship between the elasticity of product demand and the elasticity of demand for labor employed in its production is such that other things equal

the more elastic the demand for the product, the more elastic the demand for labor

assume the price of capital falls relative to the price of labor and, as a result, the demand for labor increases. therefore

the output effect is greater than the substitution effect

wage differentials may result from all the following except

the tendency of qualified workers to move from lower pay jobs to higher pay jobs

the kinked demand curve model of an oligopoly is useful in explaining

why oligopolistic prices might change infrequently

a monopsonists wage cost in hiring an additional worker is the

workers wage rate plus the wage increases paid to all workers already employed