Micro- Econ Chapter 17
a firms demand curve is its
marginal revenue product curve
price maker
A firm with some power to set the price because the demand curve for its output slopes downward; a firm with market power
Why is the demand curve for labor downward sloping? The demand curve is downward sloping A. due to the law of diminishing returns. B.because the marginal revenue product of labor is upward sloping. C.due to specialization. D.because a firm produces additional output as a result of hiring more workers. E.because the marginal cost of production is downward sloping.
A.
The demand for labor is called a derived demand, because A. demand for labor is the same as the marginal product of labor. B.demand for labor is derived from the firm's output choice. C.demand for labor is independent of the demand for the good that labor produces. D.demand for labor is the same as the marginal revenue of labor.
B.
What is the difference between the marginal product of labor and the marginal revenue product of labor for a firm in a perfectly competitive market? A. The marginal product of labor is equal to the marginal revenue product of labor divided by the amount produced. B. The marginal revenue product of labor is equal to the marginal product of labor multiplied by the product price. C. The marginal revenue product of labor is equal to the marginal product of labor multiplied by the amount produced. D.The marginal revenue product of labor is equal to the additional marginal product of labor as a result of hiring one more worker. E.The marginal product of labor is equal to the marginal revenue product of labor multiplied by the product price.
B.
price taker
a buyer or seller that is unable to affect the market price
