chapter 28 reading quiz

Changes in working conditions in an industry can affect its labor demand curve but not its labor supply curve.

False

The marginal revenue curve for a monopolist always lies above the​ downward-sloping product demand curve.

False

The market demand curve for labor is a simple horizontal summation of the labor demand curves of all individual firms.

False

Each firm purchasing labor in a perfectly competitive market can purchase all of the input it wants at the going market wage.

True

If a perfectly competitive industry in the output market suddenly became one in which there is monopoly in the output​ market, the amount of employment would fall.

True

In a perfectly competitive labor​ market, firms are price takers.

True

In a prefectly competitive​ market, firms will hire workers up to the point where the wage rate equals the marginal revenue product.

True

The marginal product of labor represents the extra output attributed to employing additional workers.

True

To minimize total costs for a particular rate of​ production, the firm will hire factors of production up to the point at which the marginal product per last dollar spent on each factor of production is equalized.

True

Under conditions of perfect competition in both product and labor​ markets, the demand for labor is a derived demand.

True

The labor demand curve will shift for all of the following reasons except

a change in wages in a competing industry.

The market demand curve for labor

is downward sloping.

For a​ monopolist, marginal revenue

is less than price.

Marginal revenue product is calculated as

marginal product) times ​(marginal revenue).

Which of the following statements is not​ correct: The price elasticity of demand for a variable input will be greater

the shorter the time period available for adjustment.

Labor outsourcing by U.S. firms tends to​ ________ U.S. wages and employment. Whenever foreign firms engage in labor outsourcing in the United​ States, U.S. wages and employment tend to​ ________.

​decrease; increase

If the marginal productivity of labor​ increases, the​ ________ curve for labor will shift to the​ ________.

​demand; right

When U.S. firms are the home firms engaging in labor​ outsourcing, the effects are​ ________ wages and​ ________ employment in the relevant U.S. labor markets.

​lower; decreased