The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal:
revenue product.
For a perfectly competitive firm, marginal revenue product is equal to:
price times marginal product.
Alan Jones owns a company that sells life insurance. When he employs 10 salespersons his firm sells $200,000 worth of contracts per week, and when he employs 11 salespersons, total revenue is $210,000. The marginal revenue product of the 11th salesperson
$10,000
For a competitive firm, workers' marginal revenue product equals the marginal product of labor times the:
price of the firm's product.
A firm's demand curve for labor coincides with the:
marginal revenue product curve.
Marginal revenue product is defined as the extra:
revenue earned by hiring one more unit of resource
A firm's demand for labor depends on, in part, the demand for the firm's product. To summarize this idea, economists say that the demand for labor is:
derived demand.
Other things equal, assume consumer demand for children's toys increases. The result is a (an):
all of the above.
Since the demand for labor depends on the demand for the product labor produces, the demand for labor is called:
derived demand.
Which of the following statements concerning the supply of labor is true?
The typical labor supply curve is upward sloping.
A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:
shift in labor supply curve leftward.
If the wage rate is fixed at a certain level, the:
labor supply curve is horizontal.
An individual firm in a competitive labor market faces a(n)
horizontal labor supply curve.
The marginal cost of labor for a perfectly competitive firm is given by:
he market wage rate.
One reason the supply of carpenters is greater than the supply of physicians is because:
of differences in human capital.
Which of the following would be a human capital investment?
All of the above.
If more and better technology is used for producing wheat in the United States than in a lesser-developed country, then the:
MRP of the U.S. workers will be higher than the MRP of the workers in the lesser-developed country.
An increase in the demand for a product will shift the demand for labor used to produce the product:
rightward.
Featherbedding allows unions to increase wages by:
increasing firms' demand for labor.
If product price increases, then:
MRP will increase.
Which of the following statements is true?
All of the above.
The optimal hiring rule is to employ labor up to the point where
wage = MRP
If the price of labor falls, we can expect:
quantity demanded of labor will increase.
A monopsony is a:
single buyer
Which of the following type of firm is not a price taker in the market in which the firm buys its inputs?
Monopsony.
A monopsonist's marginal factor cost (MFC) curve lies above its supply curve because the firm must:
increase the factor price to hire more.
Given the same marginal revenue product (MRP) and supply curves, the equilibrium quantity of labor employed in a monopsonistic labor market will be:
ess than that in a competitive labor market.
Compared to a competitive input market, a monopsonist will hire:
less and pay a lower input price.