Due Today at 11 PM CST Keep the Highest:12 5. Labor market definitions Complete

Question

Due Today at 11 PM CST Keep the Highest:12 5. Labor market definitions Complete the following table by selecting the term that matches each definition on the left Market Labor Market Labor Definition The increase in the amount of output from an additional unit of labor The additional revenue the firm receives from selling the output produced from an additional unit of labor The graphical representation of the relationship between the wage rate and the quantity of labor workers are willing to provide in a Marginal Value of the Demand Curve Supply Product of Marginal Product Curve Labor of Labor The graphical representation of the relationship between the wage rate and the quantity of labor firms are willing to hire in a market of the following events may decrease the marginal product of labor? Check al that apply. An increase in the wage rate A technological improvement that is substitutable for the labor in this market Good weather causes an increase in supply and a fall in price for one of the inputs used to make the good A flood that damages most of the machinery used to make the good, decreasing the capital stock af 9

Explanation / Answer

1. The increase in the amount of output from an additional unit of labor
Marginal product of labor

MArginal utility is the benefit derived from the consumption of an additional unit, similarly the result that additioanl unit of labor gives is the marginal product of labor.

2. The additional revenue the firm receives from selling the output produced from an additional unit of labor
Value of the Marginal Product of Labor

The amount of money that is received from the extra unit is the value of marginal product of labor

3. The graphical representation of the relationship between the wage rate and the quantity of labor workers are willing to provide in a market
Market labor supply curve

The workers are the ones who supply their ability to work so it is the graph of labor supply

4. The graphical representation of the relationship between the wage rate and the quantity of labor firms are willing to hire in a market

Market labor demand curve

Firms call for labor/workers to work so the graph represents the labor demand curve

5. Which of the following events may decrease the marginal product of labor?

b) A technological improvement that is substitutable for the labor in this market
d) A flood that damages most of the machinery used to make the good, decreasing the capital stock
Both the above will decrease the marginal product of labor as the technological imporvement will definitely reduce the labor need ad simultaneously its marginal product and the flood that damages the machinery due to which the workers wont be able to work and thereby reducing the marginal productivity.

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