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Exam 11: Labor Markets

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Question 91

True/False

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To maximize profit, a monopsonist hires workers up to the point at which marginal factor cost (MFC) equals marginal revenue product (MRP).

A) True
B) False

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Question 92

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Exhibit 11-13 A monopsonist's supply and marginal revenue product data $\begin{array} { | c | c | c | } \hline \text { Workers } & \text { Wage Rate } & \text { MRP } \\\hline 1 & \$ 8 & \$ 50 \\2 & 9 & 25 \\3 & 10 & 20 \\4 & 11 & 17 \\5 & 12 & 16 \\6 & 13 & 13 \\\hline\end{array}$ -In Exhibit 11-13, how many workers will the monopsonist hire?

A) 4.
B) 5.
C) 3.
D) 6.
E) None.

F) B) and E)
G) A) and D)

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Question 93

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Exhibit 11-4 Supply and demand curves for food servers -In Exhibit 11-4, assume that both input and output markets are perfectly competitive. If one additional server increases the number of meals sold by four per day and each meal sells for $10, each additional food server will be paid:

The marginal revenue product can be written as:

A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:

Which of the following best illustrates the concept of derived demand?

Which of the following is characteristic of the marginal revenue product schedule for a resource?

A monopsony will:

If the wage rate in a monopsonistic industry is $15, the marginal factor cost will be:

Exhibit 11-8 A labor market -If the labor market shown in Exhibit 11-8 is competitive, the wage rate and number of workers employed will be determined at point: ​

In a competitive labor market a firm will continue to employ workers for as long as an additional worker's marginal revenue product exceeds the wage rate.

A firm's demand curve for labor coincides with the:

Exhibit 11-4 Supply and demand curves for food servers -If the equilibrium wage rate in Exhibit 11-4 increased, the cause could be that:

Exhibit 11-11 Labor wage and cost data $\begin{array} { | c | c | c | c | } \hline \text { Labor } & \text { Wage } & \text { TWC } & \text { MFC } \\\hline 10 & \$ & \$ 50.00 & \$ \\11 & 5.80 & & \\12 & & & 17.80 \\13 & & 102.70 & \\14 & & 126.00 & \\15 & & & 46.50 \\\hline\end{array}$ -In Exhibit 11-11, the marginal factor cost of the 13th employee is equal to:

Currently, union membership in the United States is about:

Exhibit 11-1 Use the information in the accompanying chart to answer the following question(s) . The firm hires labor competitively and sells its product in a competitive price-taker market. $\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Units of Labor } \\\text { (per day) }\end{array} & \begin{array} { c } \text { T otal Output } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Product } \\\text { Price }\end{array} \\\hline 1 & 15 & 6 \\2 & 30 & 6 \\3 & 40 & 6 \\4 & 48 & 6 \\5 & 54 & 6 \\6 & 59 & 6 \\7 & 62 & 6 \\\hline\end{array}$ -Refer to Exhibit 11-1. What is the marginal revenue product of the fifth unit of labor?

In a competitive labor market, the demand for labor X that produces product Y will increase if the demand for product Y increases.

Dividing the change in total revenue by the change in labor gives:

In a competitive labor market a firm will continue to employ workers for as long as an additional worker's marginal revenue product is below the wage rate.

Since World War II, the percentage of U.S. workers who are unionized has declined from about 86 percent to its current level of 60 percent. ​