The marginal revenue product of labor equals a. MP/wage b. change in total reven
ID: 1128882 • Letter: T
Question
The marginal revenue product of labor equals a. MP/wage b. change in total revenue/change in units of labor c. change in total revenue times the change in units of labor d. P/MP e. MP x wage Chapter 12-Labor Markets and Labor Unions 1. People make mistakes in allocating their time a. because they always act irrationally b. despite always having expectations fulfilled c. only when leisure is a normal good because acquiring information is costly e. more often when the cost of making a mistake is high 2. Nonmarket work includes time spent a. producing goods and services for your employer b. pursuing hobbies and crafts c. engaging in strenuous physical exercise to reduce your weight d. producing your own goods and services e. managing your own firm 3. The market labor supply curve is the sum of individual labor supply curves at each quantity of labor the sum of individual labor supply curves at each wage rate the average of all individual labor supply curves the sum of the upward-sloping portions of individual labor supply curves the sum of the downward-sloping portions of individual labor supply curves a. c. d. e. 4. The equilibrium wage a. is the same in all labor markets b. occurs where the supply of labor curve begins to bend backward c. cannot be calculated because there are so many labor markets d is determined by the market demand for labor and the market supply of labor e. is irrelevant because of unionsExplanation / Answer
Ans:
a) Option E
MP * wage
Marginal revenue product of labor = marginal product * wage rate.
Marginal revenue product of labor is the value of the additional output obtained from employing additional labor.
1) Option D
because acquiring information is costly.
Considering the cost and benefits of acquiring information, people make mistake since acquiring information is costly.
2) Option D
producing your own goods and services
Nonmarket work include time spent on education or producing goods and services for personal consumption.
3) Option B
The sum of individual labor supply curves at each wage rate.
4) Option D
is determined by the market demand for labor and the market supply of labor.
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