unit 5 micro

Which of the following indicates that a perfectly competitive firm has hired the profit-maximizing amount of labor? The total product of labor exceeds the total real wage payments to workers. The average product of labor exceeds the real wage paid to workers. The marginal revenue product of labor is below the wage paid to workers. The marginal revenue product of labor is above the wage paid to workers. The marginal revenue product of labor equals the wage paid to workers.

The marginal revenue product of labor equals the wage paid to workers.

Which of the following indicates that a perfectly competitive firm has hired the profit-maximizing amount of labor? The total product of labor exceeds the total real wage payments to workers. The average product of labor exceeds the real wage paid to workers. The marginal revenue product of labor is below the wage paid to workers. The marginal revenue product of labor is above the wage paid to workers. The marginal revenue product of labor equals the wage paid to workers.

The marginal revenue product of labor equals the wage paid to workers.

A profit-maximizing firm hires labor in a perfectly competitive market. Labor is the only variable input, and the marginal product of the last worker hired is 10 units per hour. If the hourly wage is $20 , the firm's marginal revenue is $2 is $20 increases as more output is produced increases first and then decreases as more output is produced decreases first and then increases as more output is produced

is $2

An increase in the effective minimum wage will have less of an impact on employment if the demand for labor is

relatively inelastic

In comparison to a firm in a perfectly competitive labor market, a firm in a monopsonistic labor market typically will hire A fewer workers and pay a lower wage B fewer workers and pay the same wage C the same number of workers and pay a lower wage D more workers and pay a lower wage E more workers and pay the same wage

A fewer workers and pay a lower wage

A firm's decision to hire a factor of production DOES NOT depend on which of the following? A The price of the product produced by the factor input B The average product of the factor input C The price of the factor input D The demand for the product the factor produces E The marginal product of the factor input

B The average product of the factor input

Which of the following will cause a decrease in the demand for labor? A A decrease in wage rates B An increase in worker productivity C A decrease in the price of the product that the labor is used to produce D An increase in wage rates E Greater preference for leisure rather than work

C A decrease in the price of the product that the labor is used to produce

Which of the following will result in a decrease in the supply of labor? A An increase in worker productivity B An increase in the wage rate C An increase in the preference for leisure D A decrease in the price of the product that the labor is used to produce E A decrease in the wage rate

C An increase in the preference for leisure

Which of the following illustrates how factor demand is related to product demand? A The quantity demanded for restaurant meals depends on the price of the meal. B The demand for books depends on the number of authors in the market. C The demand for airline pilots depends on the demand for air travel. D The demand for auto mechanics depends on the supply of auto parts. E The demand for health care depends on the cost of health care.

C The demand for airline pilots depends on the demand for air travel.

Which of the following will occur in a given labor market when the wage rate rises? A The quantity demanded of labor will increase. B The demand for labor will decrease. C The quantity of labor supplied will increase. D The supply of labor will decrease. E The supply of labor will increase.

C The quantity of labor supplied will increase.

A firm is currently producing 3,000 units of output daily by employing 20 units of labor at a price of $100 per unit and 40 units of capital at a price of $40 per unit. The marginal product of the last unit of labor employed is 50, and the marginal product of the last unit of capital employed is 30. In order to minimize its production costs, the firm should do which of the following? A Employ more labor and less capital because the marginal product of labor is greater than the marginal product of capital. B Employ less labor and more capital because the firm is currently spending $2,000 on labor and only $1,600 on capital. C Employ more labor and less capital because the firm already employs 40 units of capital and only 20 units of labor. D Employ less labor and more capital because the marginal product per dollar spent on labor is less than the marginal product per dollar spent on capital. E Employ less labor and more capital because a unit of labor costs $100 while a unit of capital costs only $40.

D Employ less labor and more capital because the marginal product per dollar spent on labor is less than the marginal product per dollar spent on capital.

Suppose the demand for automobiles increases. Which of the following explains what happens in the labor market for automobile workers? A The price of automobiles increases and the supply of automobile workers increases, resulting in lower wages and employment. B The price of automobiles decreases and the demand for automobile workers decreases, resulting in higher wages and employment. C The price of automobiles increases and the supply of automobile workers decreases, resulting in higher wages and employment. D The price of automobiles increases and the demand for automobile workers increases, resulting in higher wages and employment. E There is no impact on the labor market, since the change in demand is in the product market.

D The price of automobiles increases and the demand for automobile workers increases, resulting in higher wages and employment.

In a monopsonistic labor market, a firm will continue to hire workers until the marginal revenue product of labor? - equals marginal factor (resource) cost, resulting in more workers being hired at a lower wage compared with a perfectly competitive labor market - equals marginal factor (resource) cost, resulting in fewer workers being hired at a lower wage compared with a perfectly competitive labor market - equals marginal factor (resource) cost, resulting in fewer workers being hired at a higher wage compared with a perfectly competitive labor market - is less than marginal factor (resource) cost, resulting in more workers being hired at a lower wage compared with a perfectly competitive labor market - is less than marginal factor (resource) cost, resulting in fewer workers being hired at a lower wage compared with a perfectly competitive labor market

equals marginal factor (resource) cost, resulting in fewer workers being hired at a lower wage compared with a perfectly competitive labor market