Econ final

if a monopolist maximized profit at 1,000 units, and a duopoly entered the market, what would be the outcome if the duoplists successfully collided? one duoplist produces---units the other produces---units

600 units 400 units

if some workers are replaced by computers what happens to the equilibrium wage and quantity of workers?

both decrease

a downward sloping value of marginal product of labor (VMPL) curve is due to:

diminishing marginal product

The equilibrium quantity in markets characterized by oligopoly is (higher/lower) than in monopoly markets and (higher/lower) than in a perfectly competitive market

higher lower

In markets characterized by oligopoly, the oligopolists earn the (highest/lowest) profit when they cooporate and behave like a ___

highest monopolist

A ___(increase/decrease) in the marginal productivity of workers would increase the demand for labor

increase

An increase in the marginal productivity of workers would (increase/decrease) the demand for labor?

increase

When a production function exhibits a diminishing but positive marginal product of labor, output_____ but at a (declining or increasing) rate, as more workers are employed

increases declining

diminishing marginal product is closely related to:

increasing marginal cost

as the number of firms increases the price approaches: the quantity approaches:

price: marginal cost quantity: an efficient level

The factors of production are best defines as the inputs used to:

produce goods and services

If the demand curve for beef shifts to the right, then the value of the marginal product of labor for butchers will:

rise

predatory pricing

selling a product below cost for a short period of time to drive competitors out of the market

marginal cost

the additional cost to a firm of producing one more unit of a good or service

equilibrium rental income equals:

the value of marginal product of capital

when a competitive firm maximizes profit, it will hire workers up to the point where:

the value of the marginal product of labor is equal to the wage

The argument that consumers will not be willing to pay any more for 2 items sold as one than they would be for the 2 items sold seperately is used to justify the legality of:

tying

from a society's stand put, cooperation among oligopolists is:

undesirable. leads to low output levels and high prices

the equilibrium rental income paid to the owners of capital at any point in time equals the

value of the marginal product of capital

a competitive firm will hire workers up to the point at which the value of the marginal product of labor equals:

wage

When a lab or market exeriences a surplus of labor, there is a downward pressure on

wages

Rosie's Flower Shop sells bouquets of roses for $15 each. If Rosie hires 10 workers, she can sell 500 bouquets per week. If she hires 11 workers, she can sell 560 bouquets per week. Rosie pays each workers $400 per week. how much is the marginal profit for the 11th worker?

$500

If a certain market were a monopoly, then the monopolist would maximize its profit by producing 1,000 units of output. if, instead, that market were aa duopoly, then what would happen if the duopolists successfully collude?

One would earn 400 units , the other would earn 600

value of marginal product of labor (VMPL) equals:

P x MPL

labor demand curve

a graph that illustrates the amount of labor that firms want to employ at each given wage rate

oligopolists earn the highest profit when they cooporate and behave like:

a monopolist

duopoly

an oligopoly consisting of only two firms

marginal product of labor (MPL) equals:

change of output / change in labor

Economists refer to the inputs that firms use to produce goods and services as:

factors of production

economists refer to the inputs that firms use to produce goods and services as:

factors of production

When an oligopoly market reaches a Nash equilibrium, a firm will have chosen_____, given the strategies chosen by other firms in the market

its best strategy

the value of the marginal product equals:

marginal product times price.

In a typical cartel agreement, the cartel maximizes profit when it behaves as a:

monopolist

an increase in the marginal productivity of workers increases:

the demand for labor

marginal product

the increase in output that arises from an additional unit of input.

For a profit-maximizing competitive firm, the value of marginal product curve is:

the labor demand curve

for a profit maximizing firm, the value of marginal product is:

the labor demand curve