Question 1

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Labor Input } \
\text { (workers per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Physical Product } \
\text { (output per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue } \
\text { MR }
\end{array} \
\hline 25 & 150 & 9.00 \
26 & 140 & 8.50 \
27 & 130 & 8.00 \
28 & 120 & 7.50 \
29 & 110 & 7.00 \
\hline
\end{array}$$
-Refer to the above table.How many workers will this firm hire if the weekly wage rate is $900?

Accepted Answer

The answer of \[\begin{array} { c c c } 
\begin{array}...

Question 2

In constructing the monopolist's input demand curve,which of the statements is FALSE?

Accepted Answer

The answer of In constructing the monopolist's input demand curve,which...

Question 3

$$\begin{array} { c c c c c } 
\begin{array} { c } 
\text { Quantity of } \
\text { Workers }
\end{array} & \text { Total Product } & \begin{array} { c } 
\text { Marginal Physical } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { Final Product }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 7 & & \$ 10 & \
2 & 18 & & 9 & \
3 & 30 & & 8 & \
4 & 40 & & 7 & \
5 & 48 & & 6 & \
6 & 52 & & 5 & \
\hline
\end{array}$$
-In the above table,what is the marginal revenue product of the 4th worker?

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 4

The MRP curve for a monopolist in the product market is

Accepted Answer

The MRP curve for a monopolist will be downward sloping and to the left of the MRP curve for a perfectly competitive firm because a monopolist faces a downward sloping demand curve and can only sell more by lowering the price. Additionally, the monopolist's MRP curve will be below the MRP curve for a perfectly competitive firm because the monopolist will produce less quantity at a higher price due to their market power.

Question 5

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Labor Input } \
\text { (workers per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Physical Product } \
\text { (output per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue } \
\text { MR }
\end{array} \
\hline 25 & 150 & 9.00 \
26 & 140 & 8.50 \
27 & 130 & 8.00 \
28 & 120 & 7.50 \
29 & 110 & 7.00 \
\hline
\end{array}$$
-Refer to the above table.How many workers will this firm hire if the weekly wage rate is $770?

Accepted Answer

The answer of \[\begin{array} { c c c } 
\begin{array}...

Question 6

$$\begin{array} { c c c c c } 
\begin{array} { c } 
\text { Quantity of } \
\text { Workers }
\end{array} & \text { Total Product } & \begin{array} { c } 
\text { Marginal Physical } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { Final Product }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 7 & & \$ 10 & \
2 & 18 & & 9 & \
3 & 30 & & 8 & \
4 & 40 & & 7 & \
5 & 48 & & 6 & \
6 & 52 & & 5 & \
\hline
\end{array}$$
-In the above table,what is the marginal revenue product of the 1st worker?

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 7

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Labor Input } \
\text { (workers per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Physical Product } \
\text { (output per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue } \
\text { MR }
\end{array} \
\hline 25 & 150 & 9.00 \
26 & 140 & 8.50 \
27 & 130 & 8.00 \
28 & 120 & 7.50 \
29 & 110 & 7.00 \
\hline
\end{array}$$
-Refer to the above table.How do we know that this is not a competitive firm?

Accepted Answer

The answer of \[\begin{array} { c c c } 
\begin{array}...

Question 8

"Other things being equal,the monopolist hires fewer workers than would be hired than a perfectly competitive industry." Do you agree or disagree? Why?

Accepted Answer

The answer of "Other things being equal,the monopolist hires fewer...

Question 9

If the demand for a monopolist's product increases,its

Accepted Answer

When the demand for a monopolist's product increases, its marginal revenue increases as well. This is because a monopolist has control over the price of its product, and can increase the price as demand goes up. As a result, the profit margin also increases, making it more profitable for the monopolist to hire more workers to increase its production and meet the growing demand.

Question 10

$$\begin{array} { c c c c c } 
\begin{array} { c } 
\text { Quantity of } \
\text { Workers }
\end{array} & \text { Total Product } & \begin{array} { c } 
\text { Marginal Physical } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { Final Product }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 7 & & \$ 10 & \
2 & 18 & & 9 & \
3 & 30 & & 8 & \
4 & 40 & & 7 & \
5 & 48 & & 6 & \
6 & 52 & & 5 & \
\hline
\end{array}$$
-In the above table,if the marginal factor cost is $20,how many workers would be hired?

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 11

$$\begin{array} { c c c } 
\begin{array} { c } 
\text { Labor Input } \
\text { (workers per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Physical Product } \
\text { (output per week) }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue } \
\text { MR }
\end{array} \
\hline 25 & 150 & 9.00 \
26 & 140 & 8.50 \
27 & 130 & 8.00 \
28 & 120 & 7.50 \
29 & 110 & 7.00 \
\hline
\end{array}$$
-Refer to the above table.How many worker will this firm hire if the weekly wage rate is $1350?

Accepted Answer

The answer of \[\begin{array} { c c c } 
\begin{array}...

Question 12

What does a monopolist's demand curve for labor look like? How does it compare to the market demand curve for a competitive industry? What does the supply curve of labor to a monopolist look like? Explain.

Accepted Answer

The answer of What does a monopolist's demand curve for...

Question 13

$$\begin{array} { c c c c c } 
\begin{array} { c } 
\text { Quantity of } \
\text { Workers }
\end{array} & \text { Total Product } & \begin{array} { c } 
\text { Marginal Physical } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { Final Product }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 7 & & \$ 10 & \
2 & 18 & & 9 & \
3 & 30 & & 8 & \
4 & 40 & & 7 & \
5 & 48 & & 6 & \
6 & 52 & & 5 & \
\hline
\end{array}$$
-In the above table,what is the marginal revenue product of the 2nd worker?

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 14

In the employment of any resource,a firm should

Accepted Answer

The firm should consider both the marginal revenue product (which reflects the additional revenue generated by an additional unit of the input) and the cost of the input. If the additional revenue generated by an input is greater than its cost, the firm should hire it. Therefore, choices A and B are both correct. On the other hand, choice C suggests that the firm should hire any input unit with a positive marginal physical product, which might not be the most profitable decision.

Question 15

When a firm has monopoly power,it

Accepted Answer

When a firm has monopoly power, it faces a downward sloping demand curve. In order to maximize profits, it sets the price where marginal revenue equals marginal cost. However, since the demand curve is downward sloping, the marginal revenue is less than the price. Therefore, the marginal revenue curve lies below the demand curve. This means that the monopoly firm will produce less output and hire fewer workers than a perfectly competitive firm in the same industry because its marginal revenue lies below the demand curve.

Question 16

If we assume competitive labor markets,the supply curve of labor when the firm is a monopoly is

Accepted Answer

The answer of If we assume competitive labor markets,the supply...

Question 17

In a perfectly competitive labor market,the least-cost combination rule for resource use

Accepted Answer

In a perfectly competitive labor market, firms aim to minimize their costs of production. The least-cost combination rule for resource use in such a market states that the marginal physical product per dollar spent for each resource should be equalized. This means that the firm should hire additional units of a resource (such as labor) as long as the marginal physical product of that resource is greater than its wage rate. As soon as the marginal physical product equals the wage rate, the firm has reached its least-cost combination of resources. Therefore, option B is the correct answer. Options A, C, and D are incorrect as they do not accurately describe the least-cost combination rule for resource use in a perfectly competitive labor market.

Question 18

In an imperfectly competitive labor market,the firm is faced with a(n)________ MPP curve and a(n)________ MR curve.

Accepted Answer

In an imperfectly competitive labor market, where the firm has some control over the wage rate, the marginal physical product (MPP) curve is downward sloping due to the law of diminishing returns. The marginal revenue (MR) curve is also downward sloping because the firm must lower the price (i.e. wage rate) it pays for each additional unit of labor hired in order to entice more workers to join the firm. Hence, the correct answer is B.

Question 19

$$\begin{array} { c c c c c } 
\begin{array} { c } 
\text { Quantity of } \
\text { Workers }
\end{array} & \text { Total Product } & \begin{array} { c } 
\text { Marginal Physical } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { Final Product }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 7 & & \$ 10 & \
2 & 18 & & 9 & \
3 & 30 & & 8 & \
4 & 40 & & 7 & \
5 & 48 & & 6 & \
6 & 52 & & 5 & \
\hline
\end{array}$$
-In the above table,if the marginal factor cost is $48,how many workers would be hired?

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Question 20

$$\begin{array} { c c c c c } 
\begin{array} { c } 
\text { Quantity of } \
\text { Workers }
\end{array} & \text { Total Product } & \begin{array} { c } 
\text { Marginal Physical } \
\text { Product }
\end{array} & \begin{array} { c } 
\text { Price of } \
\text { Final Product }
\end{array} & \begin{array} { c } 
\text { Marginal } \
\text { Revenue Product }
\end{array} \
\hline 1 & 7 & & \$ 10 & \
2 & 18 & & 9 & \
3 & 30 & & 8 & \
4 & 40 & & 7 & \
5 & 48 & & 6 & \
6 & 52 & & 5 & \
\hline
\end{array}$$
-In the above table,if the marginal factor cost is $96,how many workers would be hired?

Accepted Answer

The answer of \[\begin{array} { c c c c c...

Quiz 15: The Labor Market: Demand, supply and Outsourcing

In constructing the monopolist's input demand curve,which of the statements is FALSE?

The MRP curve for a monopolist in the product market is

"Other things being equal,the monopolist hires fewer workers than would be hired than a perfectly competitive industry." Do you agree or disagree? Why?

If the demand for a monopolist's product increases,its

What does a monopolist's demand curve for labor look like? How does it compare to the market demand curve for a competitive industry? What does the supply curve of labor to a monopolist look like? Explain.

In the employment of any resource,a firm should

When a firm has monopoly power,it

If we assume competitive labor markets,the supply curve of labor when the firm is a monopoly is

In a perfectly competitive labor market,the least-cost combination rule for resource use

In an imperfectly competitive labor market,the firm is faced with a(n) MPP curve and a(n) MR curve.

Quiz 15: The Labor Market: Demand, supply and Outsourcing

In constructing the monopolist's input demand curve,which of the statements is FALSE?

The MRP curve for a monopolist in the product market is

"Other things being equal,the monopolist hires fewer workers than would be hired than a perfectly competitive industry." Do you agree or disagree? Why?

If the demand for a monopolist's product increases,its

What does a monopolist's demand curve for labor look like? How does it compare to the market demand curve for a competitive industry? What does the supply curve of labor to a monopolist look like? Explain.

In the employment of any resource,a firm should

When a firm has monopoly power,it

If we assume competitive labor markets,the supply curve of labor when the firm is a monopoly is

In a perfectly competitive labor market,the least-cost combination rule for resource use

In an imperfectly competitive labor market,the firm is faced with a(n) ________ MPP curve and a(n) ________ MR curve.

In an imperfectly competitive labor market,the firm is faced with a(n) MPP curve and a(n) MR curve.