microeconomics finals

Refer to Figure 12.4 for a natural monopoly. Marginal cost pricing regulation would call for a price of:

$8

Which of the following increases labor demand is due to a change in the product demand?

. Tourism increases in popularity, increasing the demand for workers at tourist resorts.

Refer to the above figure for a natural monopoly. To maximize profits, this monopolist would produce:

16 units and charge $16.

. Refer to the above table. How many more workers will the firm hire when the wage rate is $15 instead of $30

2 workers

In the above table, the marginal revenue product of the second worker hired is:

24 per hour

. Refer to the above table. At a wage rate of $23 per worker, the firm will choose to employ

3 workers

In the above table, the marginal physical product of the third worker hired is:

5 units per hour

When the minimum wage is raised in a competitive market, ceteris paribus:

All of the above

If the MPP of an additional unit of labor is 4 units per hour, product price is constant at $3 per unit, and the wage

An additional unit of labor should not be employed.

Other things being equal, which of the following would increase the market demand for labor

An increase in the marginal productivity of labor.

The demand for labor and other factors of production typically declines in a recession because those factors

Are derived from the demand for final output, which also declines in a recession.

The marginal revenue product of labor is equal to:

Change in total revenue change in quantity of labor.

Ceteris paribus, if the demand for computers increases, the demand for labor in the computer manufacturing industry will:

Increase because the MRP of labor has increased.

The change in total revenue associated with one additional unit of input measures labor's:

MRP

The number of hours that a worker is willing to work is determined by the trade-off between the increasing:

Marginal utility of leisure and the decreasing marginal utility of income

If household income and wealth increases, there will be a

Rightward shift of the labor supply curve.

If Reggie's substitution effects outweigh his income effects, his labor-supply curve will

Slope upward

When people are standing in line for jobs and there are more applicants than jobs, then the labor market is characterized by a:

Surplus of labor.

Other things being equal, a profit-maximizing employer will employ additional labor as long as:

The MRP of labor exceeds the wage rate.

The opportunity cost of working is the

Value of leisure time that must be given up.

The demand for factors of production is:

all the above

Which of the following would shift the market demand for labor, ceteris paribus?

all the above.

The law of diminishing returns states that, ceteris paribus, the MPP of labor declines as:

more labor is employed

Which of the following would not shift the market demand for labor, ceteris paribus?

the wage paid to labor

At a given wage rate, the firm will be willing to hire an additional worker only if

The worker contributes at least as much to marginal revenue as to marginal costs.

The labor-supply curve depicts the

Quantities of labor supplied at alternative wage rates.

An upward-sloping labor-supply curve illustrates:

The direct relationship between quantity of labor supplied and the wage rate.

. A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. The cost of each worker is $40 per day. The firm should:

hire more than five workers

The marginal revenue product of labor curve is the firm's

labor-demand curve