Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

1. The addition to revenue obtained fom firing an additional unit of labor is: a

ID: 1208024 • Letter: 1

Question

1. The addition to revenue obtained fom firing an additional unit of labor is:

a. marginal revenue product

b. marginal physical product of labor

c.total product

d. mrginal factor cost

2. The firm's demand curve for labor is:

a. the demad curve for the good produced divided by the price of the good

b.the marginal revenue product curve for labor

c.the marginal physical product curve for labor divided by the good

d. the margianl physical product curve for labor multiplied by the price of labor

3. If the price of the product is $1.50 and the marginal factor cost of an additional unit of an input is $105, how many units of labor should be hired?

Labor input (workers/day)_______________________________-total physical product (output/day)

10 __________________________________________________500

11__________________________________________________600

12__________________________________________________690

13___________________________________________________760

14___________________________________________________800

a. 14

b.12

c.13

d.11

4. the price elasticity of demand for labor equals

a. the change in quantity demanded of labor divided by the change in the price of labor

b. the slope of the demand curve for labor

c. the perentage change in the price of labor deivided by the percentage hange in the supply of labor

d. the percent hange in the quantity demanded of labor divided by the percentage hange in the price of labor

5. We would expect that a rise in labor supply will have a proportinatley larger effet on the market wage rate when:

a. the supply for labor is elastic

b.the demand for labor is unitary elastic

c.the demand for labor is elastic

d.the demand for labor is inelastic

Explanation / Answer

1. The addition to revenue obtained fom firing an additional unit of labor is:

d. marginal factor cost.

2. The firm's demand curve for labor is:

b.the marginal revenue product curve for labor.

3.  If the price of the product is $1.50 and the marginal factor cost of an additional unit of an input is $105, how many units of labor should be hired?

d.11

4. The price elasticity of demand for labor equals:

d. The percent hange in the quantity demanded of labor divided by the percentage hange in the price of labor.

5. We would expect that a rise in labor supply will have a proportinatley larger effet on the market wage rate when:

c.the demand for labor is elastic.

*****