Exam 18: Markets for Factors of Production

Value of marginal product equals marginal product

A situation where a union bargains with a monopsony employer is termed a

The value of marginal product equals

Intel hired a consultant who found that the value of marginal product of Intel's workers decreased as more workers were hired. Suppose Intel is a monopolistically competitive firm. Then the value of marginal product decreases because the I. workers' marginal product of labor decreased as more workers were hired. II) marginal revenue of Intel's chips decreased as more chips were sold.

-The above figure shows the market for labor. The employer is a monopsony. If a minimum wage is set at $10 per hour, which of the following will occur?

-The above figure represents the market for professional minor-league baseball umpires. a) If umpires are offered $90 a game, what is the quantity of umpires supplied? b) If umpires are offered $90 a game, is there a surplus or shortage of games umpired? What does the shortage or surplus equal? c) What is the equilibrium wage rate and quantity of umpires?

An increase in the price of a firm's output increases the firm's demand for labor because the

-The above figure shows the market for labor. The employer is a monopsony. If the workers are unionized, the wage will be

Suppose the interest rate is 5 percent per year. The present value of $210 to be received one year from today is

-The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. Initially the market price of peanuts is $2.00 per pound. If the market price of peanuts fall to $1 per pound and a worker costs $800 per month, how many workers will Peter employ to maximize his profit?

As the quantity of labor increases, value of marginal product for a perfectly competitive firm

-If there is a monopsony operating in the labor market illustrated in the figure above and the federal government decides to institute a minimum wage of $8 an hour then the wage paid will ________ and the quantity of labor hired will ________.

The union representing the bread makers at the Hostess Bread Company went on strike and demanded higher wages than what the firm wanted to pay. I. If the firm is in a competitive labor market the union can only raise wages by decreasing employment. II) If the firm is a monopsony in the labor market the union can only raise wages by decreasing employment. III) If the firm is a monopsony in the labor market the union can both raise wages and increase employment.

In November 2008, the air traffic controllers who work at Guam became unionized. What would NOT be a way for the union to influence labor demand?

Which of the following methods is used by unions to increase the demand for the labor of its members?

-Sun's Gas Station is a firm operating in a perfectly competitive industry. Sun's Gas Station sells each gallon of gas for $3. What is the value of marginal product from hiring the fourth worker?

-The above figure illustrates the case of a monopsony in the labor market. If the current wage paid is W₁ and new wage legislation is passed that increases the minimum wage in this market to W₂, the firm will

A decrease in the wage rate

The labor supply curve has a positive slope if the

When a union faces a monopsony buyer, a ________ exists.