module 11 chapter 11
If the market price of bicycle frames is $500, and frame welders earn a wage of $50, how many welders will be hired?
Hiring will stop when the MP is 0.1.
A monopsonist will hire fewer workers than will be hired in a competitive labor market. Correct!
true
As the price of a competitive firm's product rises, the firm's demand for labor also rises.
true
In a competitive labor market, the demand for labor X that produces product Y will increase if the demand for product Y increases. Correct!
true
To maximize profit, a monopsonist hires workers up to the point at which marginal factor cost (MFC) equals marginal revenue product (MRP).
true
Union membership as a percentage of the civilian labor force is lower in the United States than in Germany or Japan.
true
Suppose a monopsonist wants to hire more workers. If it has to pay the same wage to all of its workers, the:
wage and the marginal factor cost will increase.
Wage Rate Number of Workers $ 0 0 5 10 8 20 12 30 16 40 In Exhibit 11-14, the marginal factor cost when the monopsonist goes from 30 to 40 workers hired is:
28
Labor Output 0 0 1 20 2 45 3 80 4 100 5 110 In Exhibit 11-2, the marginal product of the 3rd unit of labor is equal to:
35
A monopsonist will hire more workers than will be hired in a competitive labor market. You Answered
false
A union can influence the equilibrium wage rate by:
collective bargaining. featherbedding. lobbying for legislation to reduce immigration. *all of these.
A union can influence the equilibrium wage rate by:
collective bargaining. featherbedding. lobbying for legislation to reduce immigration. Correct! * all of these.
The marginal revenue product of a resource is:
the marginal product of the resource multiplied by the price of the product it helps to produce.
Units of Labor Total Output Product (per day) (dollars) Price 1 15 6 2 30 6 3 40 6 4 48 6 5 54 6 6 59 6 7 62 6 Harold Brown runs a company that sells encyclopedia sets for $250 each. When he employs 10 workers, they can sell 60 sets per week, while only 54 sets are sold when 9 workers are employed. What is the weekly marginal revenue product of the tenth worker?
$1,500.
If product price increases, then:
MRP will increase.
The demand for labor is:
derived demand.
Suppose a firm can hire 100 workers at $8.00 per hour but must pay $8.05 per hour to hire 101 workers. Marginal factor cost (MFC) for the 101st worker is approximately equal to:
13.05
Labor Output 0 0 1 20 2 45 3 80 4 100 5 110 In Exhibit 11-2, if product price is fixed at $8, the MRP of the 2nd worker is equal to:
200
Labor Wage TWC MFC 10 $ $ 50.00 $ 11 5.80 12 17.80 13 102.70 14 126.00 15 46.50 In Exhibit 11-11, the total wage cost of hiring 12 employees is equal to:
81.60
Which of the following statements is true?
A monopsony is the only employer of a factor of production.
If an employer currently finds that the MRP of its labor resources equals $67, and the MFC equals $56, what would you advise the firm to do?
Hire additional workers.
The firm's demand for labor curve is exactly the same as the:
MRP curve.
If a monopsony finds that its MRP is greater than its MFC, it:
should hire more workers to increase profits.
If more and better technology is used for producing wheat in the United States than in a lesser-developed country, then the: Correct!
MRP of the U.S. workers will be higher than the MRP of the workers in the lesser-developed country.
According to the economic theory of labor markets, if unions are successful in raising wages, with no accompanying increase in labor productivity, then which of the following is true?
The quantity of labor demanded by profit-maximizing firms will decline.
In a labor market with one employer, the MFC is:
above the labor supply curve.
The marginal factor cost for a monopsonist is:
above the market wage rate.
An improvement in technology that increases the marginal product will shift the demand for labor curve to the left.
false
Question 18 1.5 / 1.5 pts As a percentage of nonfarm workers, union membership in the United States grew most rapidly since 1945.
false
If the wage rate in a monopsonistic industry is $15, the marginal factor cost will be:
greater than $15.
For a monopsonist, the supply of labor facing the firm is:
identical to the supply curve facing the market.
Which of the following is the best example of an investment in human capital?
on-the-job training received by an apprentice electrician
One reason the supply of carpenters is greater than the supply of physicians is because:
physicians do not belong to a union. carpenters demand less income. carpenters belong to unions. *none of the above.
Other things equal, assume consumer demand for children's toys increases. The result is a(n):
rightward shift in the market demand for labor curve in the toy industry. increase in the marginal revenue product of firms in the toy industry. increase in derived demand for workers in the toy industry. *all of these.
The marginal revenue product of labor is:
the contribution to total revenue made by the marginal laborer.
The marginal revenue product curve is: Correct!
the marginal contribution of an additional worker to firm's revenues. the change in total cost that results from employing an additional worker.
In a competitive labor market, the change in total labor costs divided by the change in labor is always equal to:
the wage rate.
