match those letter to the right answer? A.The wage rate increases in the industr
ID: 1120092 • Letter: M
Question
match those letter to the right answer?
A.The wage rate increases in the industry and the quantity supplied of workers increases
B. Marginal Revenue Product
C. The product produced has several close substitutes
D. Its labor demand curve
E. The wage rate in the DVD industry increases and the quantity supplied of workers increases
F. The supply to other industries falls
G. Lower wages
H. Derived from the demand for the final product being produced
I. A change in the price of a substitute input causes the demand for labor to change in the same direction
J. Both I and II
K. Hire less labor
L. Marginal factor cost of labor
M. Marginal physical product multiplied by marginal revenue
N. The percentage change in the quantity demanded of labor divided by the percentage change in the price of labor
O. An increase in the price of output
P. Downward sloping; upward sloping
Q. The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.
R. Firm's supply curve for labor
S. The change in total revenue resulting from a one-unit change in variable input
T. The intersection of the market demand curve for labor and the market supply curve of labor
U. Shift to the right
V. The marginal factor cost is less than the marginal revenue product of the additional workers
W. The longer the time period being considered
X. A reduction in demand for an input used to produce the final product
Y. The quantity of labor demanded at every possible wage rate will be less
Z. Stop hiring
AA. Hire more workers
BB. The amount of capital each worker has to work with declines as the number of workers increases
CC. A decline in labor productivity
DD. Marginal physical product
EE. Workers receive better employment opportunities in other industries
FF. Marginal revenue product of labor
GG. Can buy all the labor it wants at the going market wage rate
HH. Workers can easily be replaced by capital goods
II. A firm can increase quantity demanded for labor when the wage rate falls without affecting the product price but the industry cannot hire more workers without causing the product price to fall
JJ. The additional cost of a worker equals the additional revenue from the worker
KK. The price of DVD machines will increase leading to an increase in the demand for labor by the firm
LL. The supply for pizza makers decreased
MM. Layoff workers
NN. The marginal physical product multiplied by marginal revenue
OO. The equilibrium wage rate and the equilibrium quantity of labor will both decrease
PP. Decrease because each worker now has less capital and other resources to work with
QQ. The change in total cost that results from using one more unit of an input
RR. The marginal physical product of labor
SS. The market demand curve depends upon labor productivity, the wage rate and the price of the final product
TT. Slopes downward
UU. An increase in the demand for labor by this firm
Place the correct LETTER answer from the list provided in front of the NUMBERED questions below
QUESTIONS:
__________ 1. A fall in the price of the final product produced by a firm will cause
__________ 2. Which of the following would cause the price elasticity of demand for a variable input to be greater?
__________ 3. If the marginal productivity of labor decreases, then
__________ 4. A profit-maximizing firm in a competitive market will continue to hire more workers when
__________ 5. When MFC = MRP, a firm in a competitive market will
__________ 6. When the price of a product increases, the marginal revenue product curve in a perfectly competitive market
__________ 7. When MFC < MRP, a firm in a competitive market will
__________ 8. As more workers are hired, the marginal physical product of labor eventually declines because
_________ 9. The marginal revenue product is
__________ 10. Which of the following will lead to a decrease in the firm's short-run demand for labor?
__________ 11. The wage rate found by the intersection of the market demand and supply curves for labor then determines the
__________ 12. The change in total output due to the change in one variable input, while holding all other inputs constant, is the
__________ 13. Suppose the market for autoworkers is initially in equilibrium, but then suppose the automakers improve working conditions at the plants. What happens in the market for autoworkers?
__________ 14. The supply of labor to an industry will decrease when
__________ 15. In a perfectly competitive labor market, the industry demand curve is ________ and the industry supply curve is ________
__________ 16. The additional revenue earned from hiring one more worker is known as the
__________ 17. Which of the following will lead to an outward shift in the firm's short-run demand for labor?
__________ 18. The individual firm operating in a perfectly competitive labor market
__________ 19. We would expect that a fall in labor supply will have a proportionately smaller effect on the market wage rate when
__________ 20. Marginal revenue product is
__________ 21. Which of the following statements is true?
__________ 22. The additional cost associated with the hiring of one more unit of labor is known as the
__________ 23. A firm will not hire additional workers once
__________ 24. If the price of labor increases, the typical perfectly competitive firm in the short run will
__________ 25. An increase in demand for DVD machines occurs. Which of the following statements is true for individual firms that produce DVD machines?
__________ 26. Which of the following statements about a perfectly competitive market are true?
I. The perfectly competitive industry faces an upward sloping labor supply curve.
II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve.
__________ 27. Suppose the market for pizza makers is initially in equilibrium, but then the equilibrium wage rate increased and the equilibrium quantity of labor will decreased. What happened in the market for pizza makers?
__________ 28. In labor markets, the substitution effect occurs when
__________29. The demand for labor is
__________ 30. When MFC > MRP, a firm in a competitive market will
__________ 31. An increase in the supply of labor generates
__________ 32. When there is an increase in the wages the banking industry offers accountants, what happens to the supply of accountants available to other industries?
__________ 33. Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
__________ 34. The demand for DVD's increases. As a result,
__________ 35. We assume that when a firm hires additional workers, the marginal physical product of labor will
_________ 36. A firm's marginal factor cost describes
__________ 37. A firm's marginal revenue product of labor curve is also
__________ 38. If a firm employs an extra unit of labor, the additional product generated by employing the extra unit of labor is
__________ 39. We would expect unions to have a more difficult time negotiating higher wages for their members when
__________ 40. Which of the following statements is true about the market demand curve for labor?
__________ 41. The market demand curve for labor
__________ 42. The contribution to total revenues coming from the next worker hired is
__________ 43.A firm purchases more capital equipment. We would expect to observe
__________ 44. The demand for computers increases. As a result,
Explanation / Answer
Question 1
A fall in price of the final product produced by the firm will lower the profit-margin of the firm.
This will induce firm to cut production.
As firm will cut production, its demand for inputs used in production of stated final product will also decrease.
So, there will be reduction in demand for an input used to produce final product.
The correct answer is the letter (X).
Question 2
The price elasticity of demand for a variable input to be greater implies that elasticity of demand for a variable input is more elastic.
This can happen if long-run time period is considered because greater the time period, higher would be the chances to find substitute of the stated input.
So, longer the time period being considered, greater would be the price elasticity of demand for variable input.
The correct answer is the letter (W).
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