ECON 110 Quiz 4 Monopoly The Labor Market solutions complete answers

ECON 110 Quiz 4 Monopoly The Labor Market solutions complete answers 

 

The labor supply curve relates the quantity of labor supplied to the

 

If a monopoly’s marginal revenue for a product is $25 and the marginal cost is $18, the firm should do which of the following?

 

All else remaining constant, or "ceteris paribus," for an upward-sloping labor supply curve, the quantity of labor supplied varies directly with

 

Which of the following is likely to be a monopolist?

 

Carla’s Crop Dusting Service charges competitive prices even though it has no competition. This is most likely because

 

For a monopoly, profits are maximized at the output level where price and marginal cost are equal.

 

Which of the following is NOT a barrier to entry into a monopoly market?

 

As a person works more hours and leisure time declines, the opportunity cost of labor _____ and the marginal utility of income _____.

 

In which of the following industries is marginal cost pricing most likely?

 

When people are standing in line for jobs and there are more applicants than jobs, the job market is characterized by a

 

Which of the following is similar for both a competitive industry and a monopoly?

 

The labor-supply curve is downward-sloping because of the law of diminishing marginal returns.

 

In a competitive industry, barriers to entry prevent new suppliers from entering the market.

 

Which market structure is characterized by a few interdependent firms?

 

Which of the following is true for a monopoly?

 

The demand curve for an individual monopolist

 

The quantity demanded of labor depends on the

 

The labor demand curve is downward-sloping because

 

A monopolist sets price at a point on the _______ curve, corresponding to the rate of output determined by the intersection of _______.

 

As noted in the text, which of the following allowed Polaroid to win the monopoly power battle with Kodak?

 

Which of the following will decrease the market demand for labor, ceteris paribus?

 

If a seafood restaurant can raise the price of its fried shrimp without losing all of its customers, then the restaurant definitely

 

Which of the following is NOT true about barriers to entry?

 

In order to calculate marginal revenue product, it is necessary to know the

 

The impact on the labor market due to an increase in the minimum wage

 

The quantities of labor employers are willing and able to hire at alternative wage rates is the

 

Ceteris paribus, the willingness and ability to work specific amounts of time at alternative wage rates in a given period of time is

 

The demand for labor is dependent on the demand for the final product or service.

 

The marginal revenue curve for a monopolist is greater than the price because the monopolist faces a downward sloping demand curve for its product.

 

Tiger Woods is paid high endorsement fees by companies because

 

Economies of scale occur when the long-run average cost curve slopes downward.

 

The market supply of labor

 

Ceteris paribus, for an upward-sloping labor supply curve, there is an increase in the quantity of labor supplied when the 

 

The opportunity cost of working is the

 

If labor productivity increases, wages can rise without sacrificing jobs.

 

If a market changes from perfectly competitive to monopolistic, output will increase and the price will decrease, ceteris paribus.

 

A firm that has the ability to alter the market price of a good is said to have

 

What is the difference in demand between a perfectly competitive firm and market demand?

 

If the government grants an exclusive right to produce of license a product this is known as

 

A __________ is the only seller of a good in a particular market.

 

A monopolist has market __________ because it controls the quantity produced and thus has some control over the price.

 

If a firm has the ability to alter the market price of a good or service, then it

 

Compared to perfectly competitive firms monopolist

 

The change in total revenue when one more unit is sold is called _____________ revenue.

 

Marginal revenue for a perfectly competitive firm is equal to _______while for a monopolist marginal revenue is less than price.

 

With a downward-sloping demand curve, a monopolist can only increase sales by charging a _______ price.

 

__________ firms are always under pressure from other firms in the industry to hold down costs.

 

In a monopoly, marginal revenue is less than price for every unit of output except which one?

 

Marginal revenue for the perfectly competitive seller is EQUAL TO price, whereas for the monopolist it is _________ price.

 

A monopolist uses the rule of marginal revenue equals marginal cost to determine the profit-maximizing 

 

Which of the following describes why marginal revenue is less than price under a monopoly?

 

How much will a monopolist produce?

 

At output levels before MR=MC, marginal______ is higher in comparison to marginal _______, and at output levels after MR=MC, marginal COST is higher than marginal _______.

 

According to the profit-maximizing rule, a monopolist should produce a rate of output where

 

A monopolist will maximize profits when

 

_________ profit is found by multiplying per-unit profit at the profit-maximizing output (the difference between price and average total cost) by the profit-maximizing output.

 

As compared to a monopoly, a perfectly competitive industry output is ____, prices are ______, and profits are _____.

 

A monopolist computes total profits by multiplying ______ by the quantity sold.

 

A monopolist finds it profitable to charge a(n) ______ price and supply a smaller quantity, compared with competitive firms.

 

_____ profit is found by multiplying per-unit profit at the profit-maximizing output (the difference between price and average total cost) by the profit-maximizing output.

 

When a monopolist sues a potential competitor to stop entry into the market it is known as:

 

An example of an entrance barrier is when corporations force consumers to purchase complementary products, this is often referred to as

 

An example in the text of government franchising as a barrier to entry was when

 

In ________ the firm charges a price that is greater than marginal cost.

 

When the government gives a single firm the exclusive right to produce a particular good in a specific market, this is a barrier to entry known as

 

In _____________, the firm charges a price that is equal to marginal cost.

 

In a duopoly there are two firms rather than one. In order to maximize industry profits how might these two firms choose to behave?

 

The offer (supply) of goods at prices equal to their marginal cost is known as

 

Only________ exhibits marginal cost pricing.

 

Competitive markets tend toward _____________. This is particularly important to consumers because it informs consumers of the true opportunity cost of these goods.

 

In ___________, the firm charges a price that is equal to marginal cost.

 

The offer (supply) of goods at prices equal to their marginal cost is known as___________________.

 

The _______ _______ argument in favor of monopoly is based on the idea that greater profit encourage more entrepreneurial activity.

 

It has been argued that greater profit prizes will stimulate more _________________ activity.

 

An industry in which one firm can achieve economies of scale over the entire range of market supply is a

 

If economies of scale are extensive, then a _________ _________ will be able to supply an entire market at a lower cost than could a number of competing firms.

 

With economies of scale 

 

The ____________ regulates some natural monopolies to guard against excessively high prices to consumers and to ensure that the benefits of increased efficiency are shared with consumers.

 

Why are some industries permitted to operate as natural monopolies instead of encouraging competition?

 

A monopoly subject to potential entry if prices or profits increase because of modest entry barriers is a called a 

 

When evaluating whether or not monopolies are bad for society, market ________ per se is not the problem, what counts is market ______.

 

A monopoly will often use_________ ___________ a sharp but temporary cut in prices, for the chance to attain market share and in order to put up barriers against would-be competitors.

 

An industry in which each firm's lowest ATC is substantially higher than that of a single seller is an inefficient one and allows a single, low-cost production seller to be efficient describes a 

 

Which of the following might be used to protect a monopoly from competition?

 

Which of the following is likely to be a monopolist?

 

Monopolists are price 

 

For a monopolist, the demand curve facing the firm is 

 

Since a monopoly has market power 

 

In order to sell one additional unit of output, a profit-maximizing monopolist must

 

For a monopolist, after the first unit of output, marginal revenue is always

 

Suppose a monopoly firm produces software and can sell 10 items per month at a price of $50 each. In order to increase sales by one item per month, the monopolist must lower the price of its software by $1 to $49. The marginal revenue of the 11th item is 

 

Which of the following do a monopolist and a competitive firm generally have in common?

 

For a monopoly in long-run equilibrium, economic profits are likely to be

 

Which of the following statements is true, assuming the same cost and demand conditions?

 

Which of the following is consistent with a monopoly industry?

 

Suppose a market is dominated by three firms. This type of market is called

 

Which market structure is characterized by a few interdependent firms?

 

Suppose a market has many firms and each firm has some brand image. This type of market is likely

 

An industry in which one firm can achieve economies of scale over the entire range of output is referred to

 

If a monopoly's marginal revenue for a product is $25 and the marginal cost is $18, the firm should do which of the following?

 

An industry structure with many firms, each of which has some distinct brand image, is called 

 

_____________ must increase to compensate for increasing opportunity cost of labor.

 

Firms that want to hire workers or encourage current workers to work more hours 

 

The total quantity of labor that workers are willing and able to supply at alternative wage rates in a given time period, ceteris paribus, is the market ___________ of labor.

 

The market supply curve of labor slopes upward, which indicates that 

 

The price paid per unit of labor services, in many cases paid per hour of work, is referred to as the ____________.

 

___________ is the increase in total production that results when one additional worker is hired.

 

The marginal revenue product:

 

The __________ sets an upper limit to the wage rate an employer will pay.

 

Marginal physical product tends to ____________ as additional workers are hired.

 

The marginal physical product of a variable input declines as more of it is employed with a given quantity of other (fixed) inputs describes the law of:

 

Marginal physical product declines because

 

In a labor market, the intersection of market supply and market demand establish:

 

If labor productivity (MPP) rises, wages will _________ without sacrificing jobs.

 

____________ product price would increase labor demand.

 

___________ will cause employers to hire fewer workers.

 

The minimum wage may _________ quantity of labor demanded, yet those workers who remain employed end up with higher wages than before.

 

Through the exclusion of workers, a union is able to

 

The highest wage an individual would earn in the best alternative job is known as the

 

Higher product price would __________ labor demand.

 

The willingness and ability to work specific amounts of time at alternative wage rates in a given time period is called labor __________.

 

The quantities of labor employers are willing and able to hire at alternative wage rates in a given time period, ceteris paribus, is the ___________ for labor.

 

The upward slope of an individual's labor supply curve is thus a reflection of which two phenomena:

 

When labor is highly productive and product demand is strong, which of the following are common effects on the available workforce.

 

The demand for labor, or for any other resource, reflects the changing __________ of workers as more are hired.

 

The opportunity cost of working is the

 

The following table shows how apple output changes as additional apple pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket.

Table 8.1—Apple Production

In Table 8.1, if the equilibrium wage is $24 per day, how many apple pickers will the firm hire?

 

Refer to Figure 8.2. A minimum wage of W2 will result in a surplus of ____ workers.

 

The labor supply curve relates the quantity of labor supplied to the:

 

At the equilibrium wage, the quantity demanded of labor equals the quantity supplied.



Which of the following would cause the equilibrium price of labor to increase?

 

The MRP curve is the labor supply curve for the firm.



Unions influence a labor market by doing all of the following except:

 

Ceteris paribus, for an upward-sloping labor supply curve, there is an increase in the quantity of labor supplied when the:

 

The following table shows how apple output changes as additional apple pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket.

Table 8.1—Apple Production

In Table 8.1, what is the marginal physical product of the 3rd apple picker?

 

The following table shows how apple output changes as additional apple pickers are hired. Calculate marginal physical product, total revenue, and marginal revenue product. The price of apples is $4 per basket.

Table 8.1—Apple Production

In Table 8.1, what is the marginal revenue product of the 2nd apple picker?

 

All else remaining constant, or "ceteris paribus," for an upward-sloping labor supply curve, the quantity of labor supplied varies directly with:

 

The demand curve for labor is downward-sloping because:

 

When making the hiring decision, firms should compare the:

 

The market equilibrium wage occurs where:

 

An increase in the minimum wage tends to have which of the following effects?

 

Which of the following will decrease the market supply of labor, ceteris paribus?

 

As the opportunity cost of working increases, workers require higher rates of pay.



Market power exists if a firm can alter:

 

If a seafood restaurant can raise the price of its fried shrimp without losing all of its customers, then the restaurant definitely:

 

Which of the following firms is likely to have the greatest market power?

 

The total quantities of a good that people are willing and able to buy at alternative prices defines:

 

Which of the following is true about market demand?

 

The demand curve for an individual monopolist:

 

A patent:

 

Which of the following might be used to protect a monopoly from competition?

 

If the entire output of a market is produced by a single seller, the firm:

 

An industry dominated by one firm is:

 

Which of the following is likely to be a monopolist?

 

Which of the following is likely to be a monopolist?

 

Which of the following is not true for a monopoly?

 

Monopolists are price:

 

Which of the following is not a characteristic of a monopoly?

 

For a monopolist, the demand curve facing the firm is:

 

The demand curve for a monopolist:

 

Since a monopoly has market power:

 

The change in total revenue that results from a one-unit increase in quantity sold is:

 

For a monopolist, marginal revenue is:

 

In order to sell one additional unit of output, a profit-maximizing monopolist must:

 

For a monopolist, after the first unit of output, marginal revenue is always:

 

The marginal revenue of a monopolist is:

 

Suppose a monopoly firm produces software and can sell 10 items per month at a price of $50 each. In order to increase sales by one item per month, the monopolist must lower the price of its software by $1 to $49. The marginal revenue of the 11th item is:

 

Suppose a monopoly firm produces a medical device and can sell 15 items per month at a price of $2,000 each. In order to increase sales by one item per month, the monopolist must lower the price of its medical device by $100 to $1,900. The marginal revenue of the 16th item is:

 

Suppose a monopoly pharmaceutical company produces a drug and sells 100 prescriptions for $25 each. In order to sell 101 prescriptions, the monopolist must lower the price to $24 per prescription. The marginal revenue of the 101st prescription is:

 

Which of the following is true for a monopolist?

 

Which of the following do a monopolist and a competitive firm have in common?

 

Why would a monopolist never set a price on a point in the inelastic portion of the demand curve?

 

If the price is $10 and marginal revenue equals marginal cost at $7 at a quantity of 400 lbs. If the firm's profit at that point is $800, find the average total cost.

 

A monopolist sets price at a point on the _______ curve, corresponding to the rate of output determined by the intersection of ______.

 

A monopolist sets its price:

 

The price charged by a profit-maximizing monopolist occurs at:

 

In terms of pricing, which of the following is not true for a monopolist?

 

Which of the following is true for a monopoly?

 

Total profit can be calculated as:

 

For a monopoly in long-run equilibrium, economic profits are likely to be:

 

A monopolist:

 

Which of the following statements is true, assuming the same cost and demand conditions?

 

A monopoly realizes larger profits than a comparable competitive market by charging a _______ price and producing _______ output.

 

Obstacles that make it difficult or impossible for would-be producers to enter a market are known as:

 

Which of the following is not true about barriers to entry?

 

Under both monopoly and perfect competition, a firm

 

Which of the following is not an effective barrier to entry?

 

Which of the following helps to keep potential competitors out of a monopoly market?

 

Which of the following is not a barrier to entry into a monopoly market?

 

As noted in the text, which of the following allowed Polaroid to win the monopoly power battle with Kodak?

 

Which of the following practices is Microsoft accused of using to restrict competition?

 

As noted in the text, which of the following was used by Nintendo to control the video game market?

 

As noted in the text, which of the following protects the U.S. Postal Service as the provider of firstclass mail?

 

Which of the following is consistent with a competitive industry?

 

Which of the following is similar for both a competitive industry and a monopoly?

 

In comparison to a competitive industry how is a monopoly different?

 

Which of the following is consistent with a monopoly industry?

 

Which of the following is not consistent with a monopoly industry?

 

Compared to a competitive market with the same long-run costs and market demand, a monopolist has:

 

Which of the following does not have the power to set prices?

 

Suppose two firms dominate a market and control price and output. This type of market is called:

 

Suppose a market is dominated by three firms. This type of market is called:

 

The market structure of the U.S. soft drink industry is most likely:

 

Which market structure is characterized by a few interdependent firms?

 

Suppose a market has many firms and each firm has some brand image. This type of market is called:

 

A market made up of many firms, each of which has some distinct brand image, is called:

 

The market structure of the U.S. fast food industry is most likely:

 

Firms that have significant market power tend to:

 

Marginal cost pricing refers to the:

 

Which of the following is an advantage of the competitive market structure?

 

In which of the following industries is marginal cost pricing most likely?

 

Which of the following is an argument in support of monopolies?

 

The argument that concentration of market power enhances research and development efforts may be weak because:

 

An industry in which one firm can achieve economies of scale over the entire range of output is referred to as:

 

If an increase in the size of a factory results in reductions in minimum average costs, this is known as:

 

Which of the following is an argument in support of market power?

 

In some situations a monopoly might be considered more desirable than a perfectly competitive firm:

 

A natural monopoly is a firm that:

 

Consumers may not experience the benefits of economies of scale if a natural monopoly:

 

A contestable market is:

 

Monopoly may not be a problem in contestable markets if:

 

Carla's Crop Dusting Service charges competitive prices even though it has no competition. This is most likely because:

 

If you want to fly to Los Angeles, a place most airlines fly in and out of, the airline industry is likely ____, but if you want to fly to a small town in Texas, where only one airline flies, the airline industry is likely ____.

 

Temporary price reductions designed to drive out competition are called:

 

If American Airlines engages in predatory pricing, it might:

 

The following table shows some costs and prices faced by an airplane manufacturer.

Table 7.1—Monopoly costs and revenue

 

In Table 7.1, profit maximization is achieved at a production rate of:

 

In Table 7.1, the maximum profit that can be achieved is:

 

A monopolist achieves the most profitable rate of output by applying which of the following rules?

 

Table 7.2—Monopoly costs and revenue

 

In Table 7.2, profit maximization is achieved at a rate of:

 

In Table 7.2, using the profit-maximization rule, a monopolist will charge a price of:

 

In Table 7.2, at the profit-maximizing rate of output, marginal cost is:

 

In Table 7.2, at the profit-maximizing rate of output, marginal revenue is:

 

The following table shows some costs and prices faced by a company that produces submarines.

Table 7.3

 

In Table 7.3, profit maximization is achieved at a production rate of:

 

In Table 7.3, a profit-maximizing monopolist will produce where:

 

In Table 7.3, at the profit-maximizing rate of output, marginal cost is equal to _____ and marginal revenue is equal to ____.

 

In Table 7.3, at an output rate of 5 submarines per year, marginal revenue is equal to:

 

In Table 7.3, at an output rate of 4 submarines per year, marginal revenue is equal to:

 

In Figure 7.1, the profit-maximizing level of output for a monopolist is:

 

In Figure 7.1, the price charged by a profit-maximizing monopolist is:

 

In Figure 7.1, at the profit maximizing level of output for a monopolist, marginal cost is:

 

In Figure 7.1, if this industry is competitive, the profit-maximizing level of output is:

 

In Figure 7.1, if this industry is competitive, the profit-maximizing price is:

 

In Figure 7.2, the profit-maximizing level of output for a monopolist is:

 

In Figure 7.2, the price charged by a profit-maximizing monopolist is:

 

In Figure 7.2, at the profit maximizing level of output for a monopolist, marginal cost is:

 

In Figure 7.2, profit per unit for a profit-maximizing monopolist is closest to:

 

In Figure 7.2, if this industry is competitive, the profit-maximizing level of output is:

 

In Figure 7.2, if this industry is competitive, the profit-maximizing price is:

 

In Figure 7.3, the profit-maximizing level of output for a monopolist is:

 

In Figure 7.3, the price charged by a profit-maximizing monopolist is:

 

In Figure 7.3, at the profit maximizing level of output for a monopolist, marginal cost is:

 

In Figure 7.3, profit per unit for a profit-maximizing monopolist is:

 

In Figure 7.3, if this industry is competitive, the profit-maximizing level of output is:

 

In Figure 7.3, if this industry is competitive, the profit-maximizing price is:

 

A text HEADLINE article about Microsoft reported: "Microsoft mounted a deliberate assault upon entrepreneurial efforts that…could well have prevented the introduction of competition…" This passage suggests that Microsoft was able to erect barriers to entry and behave like:

 

A HEADLINE article in the text is titled "OPEC's Cut Aims to Prop Up Prices." When OPEC member nations work collectively to set their combined rate of output, they are attempting to duplicate ______ outcomes.

 

A HEADLINE article in the text, titled "Music Firms Settle Lawsuit" discusses price fixing by music companies and retailers. Which market structure is most likely to be successful in price fixing?

 

A monopolist has market power because it faces a downward-sloping demand curve.

 

Although there are other pizza restaurants in town, Pecos' Pizza Place is the oldest and largest so it is a monopoly.

 

The demand curve for a monopolist's product is the same as the market demand curve for the product.

 

Marginal revenue is the additional revenue from producing one more unit of output.

 

The marginal revenue curve for a monopolist is greater than the price because the monopolist faces a downward sloping demand curve for its product.

 

For a monopoly a firms' marginal revenue is always equal to price.

 

According to the profit-maximization rule, a firm should produce at the rate of output where marginal revenue equals marginal cost.

 

For a monopoly, profits are maximized at the output level where price and marginal cost are equal.

 

For both perfectly competitive and monopoly firms, price will exceed marginal cost at the profitmaximizing output.

 

In order to sell additional output, a monopolist must lower its price.

 

A monopolist produces more output at a lower price than a competitive market would, ceteris paribus.

 

If a market changes from perfectly competitive to monopolistic, output will increase and the price will decrease, ceteris paribus.

 

Barriers to entry are obstacles that make it difficult or impossible for additional producers to enter a market.

 

Barriers to entry are not strong enough to protect monopoly profits.

 

Patents, legal harassment, and bundling products are all examples of barriers to entry in monopoly markets.

 

Monopoly profits are an example of a barrier to entry in monopoly markets.

 

In a competitive industry, barriers to entry prevent new suppliers from entering the market.

 

For a profit-maximizing monopolist, price exceeds marginal cost at all times.

 

In an oligopoly, one firm controls the entire market.

 

An oligopolist may decide to coordinate with others in the industry in order to maximize profits.

 

In monopolistic competition there is more price-setting power than in perfect competition.

 

Monopolies tend to inhibit technology and innovation by keeping competition out of the market.

 

In order to survive the competition, monopolies must engage in research and design activity.

 

Economies of scale occur when the long-run average cost curve slopes downward.

 

When there are economies of scale, a firm can simply increase capital and unit costs will decline.

 

A natural monopoly uses legal harassment and bundling of products to keep others out of the market.

 

Even when a market appears to be a monopoly it can be contestable if there are many potential entrants.

 

Monopoly markets cannot be contestable since there is only one firm.

 

Ceteris paribus, the willingness and ability to work specific amounts of time at alternative wage rates in a given period of time is:

 

The labor-supply curve depicts the quantity of _____ at alternative ___.

 

An upward-sloping supply curve of labor illustrates that the:

 

Ceteris paribus, for an upward-sloping labor supply curve, there is an increase in the quantity of labor supplied when the:

 

The supply curve for labor is upward sloping to the right because as wages ___, the quantity of _____ rises.

 

According to the upward-sloping labor supply curve, at lower wages:

 

Ceteris paribus, for an upward-sloping labor supply curve, the quantity of labor supplied varies directly with:

 

The quantity of labor supplied:

 

An upward-sloping supply curve of labor reflects the:

 

The opportunity cost of working is the:

 

The opportunity cost of working is the:

 

An individual's labor-supply curve reveals how he or she chooses to allocate:

 

A higher wage rate causes:

 

Generally, as the number of hours worked increases, the marginal utility of leisure time tends to:

 

As a person works more hours and leisure time declines, the opportunity cost of labor _____ and the marginal utility of income ___.

 

People tend to give up watching TV in order to study for an exam when the:

 

As a person works more, the number of additional hours that he is willing to work is determined by the trade-off between increasing:

 

Work may not seem appealing because of the opportunity cost it creates, which is the:

 

Which of the following is a reason why workers typically require higher wages in order to work additional hours?

 

The market supply of labor:

 

The market supply of labor depends on the:

 

Ceteris paribus, if additional immigrants come to the United States with marketable skills, and they decide to enter the labor market:

 

Which of the following will decrease the market supply of labor, ceteris paribus?

 

Ceteris paribus, if the cost of daycare increases causing some workers to leave the labor market and stay home with their children:

 

Which of the following will not shift the labor supply curve to the right, ceteris paribus?

 

The quantities of labor employers are willing and able to hire at alternative wage rates is the:

 

If a firm can hire six workers at $12 per hour but in order to hire the 7th worker it must pay all its workers $14 per hour then the additional cost of that worker is:

 

The demand for labor is a derived demand because:

 

If the demand for labor is a derived demand, then the demand for airplane pilots depends on the:

 

A firm's demand for labor is referred to as a derived demand because it is derived from the:

 

If consumers want to increase the wages and the number of jobs for strawberry pickers they should:

 

The labor demand curve is _____ sloping to the right, which means that quantity of labor demanded will increase as the wage rate ___.

 

The quantity demanded of labor depends on the:

 

Other things being equal, higher wage rates will:

 

Which of the following does not affect labor demand?

 

A firm's demand for labor is downward sloping because:

 

The marginal revenue product curve and marginal physical product curve have similar shapes because:

 

The marginal revenue product of labor curve is the firm's:

 

Marginal _____ product sets _____ dollar limit on the wage rate an employer will pay.

 

MRP for a perfectly competitive firm is equal to:

 

In order to calculate marginal revenue product, it is necessary to know the:

 

The law of diminishing returns states that, ceteris paribus, the MPP of labor declines as:

 

The demand for labor is downward sloping because of:

 

The marginal revenue product of labor is:

 

Which of the following is the correct formula for calculating the marginal revenue product of labor?

 

In order to calculate marginal revenue product, it is necessary to know the:

 

The law of diminishing returns states that, ceteris paribus, the MPP of labor declines as:

 

The demand for labor is downward sloping because of:

 

The labor demand curve is downward sloping because:

 

When the law of diminishing returns applies, which of the following would rise with increased employment of labor, ceteris paribus?

 

The marginal product of additional units of labor eventually diminishes because, ceteris paribus:

 

According to the law of diminishing returns, as more workers are hired:

 

A firm should continue to hire workers until the:

 

When making the hiring decision, firms should compare the:

 

If the MPP of an additional unit of labor is 4 units per hour, product price is constant at $9 per unit, and the wage rate is $35 per hour, then:

 

If the MPP of the last worker hired is 3 units per hour, product price is constant at $5 per unit, and the wage rate is $18 per hour, then:

 

Assume a university pays the football coach significantly more than the university's president. This makes good economic sense if the coach:

 

Tiger Woods is paid high endorsement fees by companies because:

 

The determinants of the market demand for labor include:

 

The market demand for labor depends on all of the following except:

 

Which of the following will increase the market demand for labor, ceteris paribus?

 

Which of the following will decrease the market demand for labor, ceteris paribus?

 

The market equilibrium wage occurs where:

 

Which of the following is true about the equilibrium market wage for a particular industry?

 

The equilibrium level of employment is determined by:

 

The equilibrium wage will definitely rise if:

 

The equilibrium quantity of labor will definitely increase if:

 

Which of the following would cause the equilibrium price of labor to increase?

 

In a competitive labor market, at wages above equilibrium, the:

 

When people are standing in line for jobs and there are more applicants than jobs, then the job market is characterized by a:

 

An increase in the labor productivity is best illustrated by:

 

If labor productivity rises, then wages:

 

An increase in the equilibrium price in the product market results in:

 

Both wages and employment can increase at the same time as long as the:

 

A minimum wage:

 

When the minimum wage is established above the equilibrium wage, then:

 

If the government decides to raise the minimum wage, ceteris paribus:

 

When the minimum wage is raised, ceteris paribus:

 

If the government eliminates a minimum wage, ceteris paribus, then:

 

A minimum wage impacts the labor market by causing:

 

The impact on the labor market due to an increase in the minimum wage:

 

Labor unions are able to maintain _____ wages for union members by _____ the market.

 

Unions influence a labor market by doing all of the following except:

 

What do government imposed price floors not cause?

 

The opportunity wage refers to the:

 

When a worker's MRP is difficult to measure, for example, a college professor or corporate CEO, wages can be determined by the:

 

Table 8.1—Apple Production

 

In Table 8.1, what is the marginal physical product of the 2nd apple picker?

 

In Table 8.1, what is the marginal physical product of the 3rd apple picker?

 

In Table 8.1, what is the marginal physical product of the 4th apple picker?

 

In Table 8.1, what is the marginal physical product of the 5th apple picker?

 

In Table 8.1, what is the marginal revenue product of the 2nd apple picker?

 

In Table 8.1, if the equilibrium wage is $20 per day, how many apple pickers will the firm hire?

 

In Table 8.1, if the equilibrium wage is $16 per day, how many apple pickers will the firm hire?

 

In Table 8.1, if the equilibrium wage is $24 per day, how many apple pickers will the firm hire?

 

In Table 8.1, as more apple pickers are hired, the firm's rate of production:

 

In Table 8.1, if the price of apples increases to $6 per basket and the equilibrium wage is $30 per day, how many apple pickers will the firm hire?

 

In Table 8.1, if the price of apples increases to $8 per basket and the equilibrium wage is $48 per day, how many apple pickers will the firm hire?

 

In Table 8.1, if the price of apples increases to $10 per basket and the equilibrium wage is $40 per day, how many apple pickers will the firm hire?

 

In Figure 8.1, the equilibrium wage rate is:

 

In Figure 8.1, at equilibrium, ____ workers are employed and ____ workers are unemployed.

 

In Figure 8.1, at equilibrium, the wage rate is ____ per hour and ____ workers are employed.

 

In Figure 8.1, unemployed labor at the equilibrium wage is equal to:

 

In Figure 8.1, a minimum wage of $20 will result in a:

 

In Figure 8.1, a minimum wage of $20 will result in a surplus of _____ workers.

 

In Figure 8.2, the equilibrium wage rate is ____ and the number of unemployed workers is __.

 

In Figure 8.2, the equilibrium wage rate is ____ and the number of workers employed is __.

 

In Figure 8.2, at a wage of W2 there is a:

 

Refer to Figure 8.2. The number of workers employed in this market at a wage rate of W2 is:

 

Refer to Figure 8.2. A minimum wage of W2 will result in a surplus of ____ workers.

 

In Figure 8.3, at a wage rate of $30 per hour, this firm will hire _____ workers.

 

In Figure 8.3, for the 1st through the 6th worker:

 

In Figure 8.3, for the 7th through the 10th worker:

 

In Figure 8.3, the 7th worker will:

 

In Figure 8.3, the 5th worker will:

 

Figure 8.4—Shifts of labor supply and labor demand

Answer the indicated question(s) by selecting the letter of the following diagrams showing labor supply and labor demand shifts that best represent the effect of each event on the relevant market, ceteris paribus.

 

Refer to Figure 8.4. A significant number of immigrants enter the labor market.

 

Refer to Figure 8.4. Demand increases for the product that labor produces.

 

Refer to Figure 8.4. Price decreases for the final product that labor produces.

 

Refer to Figure 8.4. The number of employers decreases.

 

Refer to Figure 8.4. Working conditions become less pleasant.

 

Refer to Figure 8.4. Union members go on strike.

 

One HEADLINE article in the text, titled "Deutsche Telekom to Cut 19,000 Jobs," reports that the company will reduce the number of workers in the fixed-line division since people are using cell phones and internet dialing as alternatives to land lines. This article describes a labor market where labor demand is:

 

One HEADLINE article in the text reports the history of the minimum wage. From an economic perspective, a minimum wage is:

 

One HEADLINE article in the text reports the history of the minimum wage. In economic terms, a minimum wage:

 

At higher wage rates, less labor is supplied.

 

The labor-supply curve is downward sloping because of the law of diminishing marginal returns.

 

As the opportunity cost of working increases, workers require higher rates of pay.

 

Since people are paid wages to work, the opportunity cost of working is zero.

 

An increase in the wage rate will always cause more labor to be supplied.

 

One of the determinants of the market supply of labor is the number of workers in the labor market.

 

The concept of derived demand means that, for example, the demand for cotton pickers is determined from the demand for clothing made of cotton.

 

Ceteris paribus, a firm will hire more workers the higher the wage rate.

 

The demand for labor depends on worker productivity.

 

Marginal physical product increases as more workers are hired.

 

The law of diminishing returns indicates that the marginal physical product tends to fall as additional workers are hired.

 

The marginal revenue product sets a lower limit on the wage rate an employer will pay.

 

Marginal revenue product determines the highest wage that a firm is willing to pay its workers.

 

A producer in a competitive labor market will continue hiring workers until the MRP for the last worker hired equals the market wage rate.

 

The MRP curve is the labor supply curve for the firm.

 

At the intersection of labor demand and labor supply, some people who are willing to work for the equilibrium wage will not be employed.

 

At the equilibrium wage, the quantity demanded of labor equals the quantity supplied.

 

At the equilibrium wage, there is still some unemployment because the wage is so low.

 

If labor productivity increases, wages can rise without sacrificing jobs.

 

A minimum wage creates a shortage of workers.

 

A minimum wage reduces the quantity of labor demanded and increases the quantity of labor supplied.

 

All workers are better off when a minimum wage is imposed.

 

In order to maintain an above-equilibrium wage for its members, a union must exclude some workers.

 

It is easy to measure the value of a CEO by calculating his or her marginal revenue product.

 

If it is difficult to measure the MRP of a CEO, this means that the CEO should not be paid very much because he or she brings little value to the company