firm\'s decision rule to determine the optimal amount of labor to hire in an mar

Question

firm's decision rule to determine the optimal amount of labor to hire in an market is to employ additional workers until the a. marginal revenuc product of labor equals its marginal labor cost b. arginal revenue product of labor equals the wage ratc marginal product of labor is maximized. marginal revenue from production equals its marginal cost c. 29. A monopsony exerts its market power in the labor market by paying a wage rate (W) that is a. equal to the marginal revenuc product of labor b. inverscly related to the sense of humor of the worker c. greater than the marginal revenue product of labor less than the marginal revenue product of labor 30. Compared to a purely competitive labor market, a monopsonistic labor market will result in wage rates and workers hired. a. lower b. lower c. higher d. higher more fewer 31 Critics of the minimum wage argue that imposing a minimum wage higher than the equilibrium wage in a b. create an effective wage ceiling c. increase the supply of d. increase vaec workers. wage workers. a. differences in the age of workers. b. differences in the natural abilities and human capital of workers. c. differences in the occupational preferences of workers 33. ting differences in wages are the results of differences in: human capital. b worker productivity. c. a job's desirability and/or working conditions d. wealth. 34. Human capital refers to: a. work-place robots that are able to communicate with their human supervisors. b. the skills and knowledge people acquire from education and training c the accumulation of financial capital by savers d. humans who choose to work on alien spaceships

Explanation / Answer

(28) (a)

The firm will hire labor to the point where additional revenue brought in by the last unit of labor equals the marginal cost of hiring that last labor unit.

(29) (a)

(30) (c)

Compared to in competitive labor market, a monopsony pays higher wage rate and hires lower quantity of labor.

(31) (d)

At higher (minimum) wage, quantity of labor demanded will fall but quantity of labor supplied will rise, increasing unemployment.

NOTE: As per Chegg Answering Policy, first 5 questions are answered.

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