Exam 18: Markets for Factors of Production

-Pointy Stone State Park is the sole employer of naturalists in the area. The table above provides information about the supply of naturalists and the value of marginal product of labor for naturalists. What weekly wage will Pointy Stone State Park pay naturalists?

If the interest rate is 10 percent, the present value of $400 to be received one year from today is about

If a firm faces a labor supply curve that is positively sloped, then the marginal cost of labor curve

Unions tend to ________ import restrictions and ________ a higher minimum wage.

-The figure above shows a labor market. If there is a monopsony in this labor market, the wage rate is

-The above table has the total product schedule for Joe's Barber Shop. Joe charges $6 per haircut. The firm's value of marginal product of labor for the third worker is equal to

Lynn owns Dust Bunnies, a cleaning company. In one week, she is able to clean 9 houses. If she hires an employee, together they are able to clean 15 houses per week. If Lynn charges $100 to clean a house, what is the marginal product of her employee?

Linda Evangelista, a supermodel, once said that she "won't get out of bed for less than $10,000 a day." This fee is an example of

For a monopsony, the labor supply curve

The market supply of labor curve has a positive slope if higher wages induce households to choose

-Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $5, what is the value of marginal product of the second worker?

An increase in the price of a firm's good or service shifts its demand curve for labor leftward.

In a bilateral monopoly, the wage rate is likely to be ________ than the value of marginal product of labor and ________ than in a pure monopsony.

-The figure above shows the labor demand and labor supply curves for workers in local fast-food restaurants. The fast-food restaurant industry is competitive. A decrease in the supply of labor shifts the labor supply curve from LS₀ to LS₁. Fast-food restaurants hire ________ and total labor income earned by the fast-food workers ________.

The change in total revenue that results from employing one more unit of labor is called the

Which of the following is a condition for maximum profit?

For a monopsony the labor supply curve

For a monopsony, the labor supply curve is

-The above figure shows the market for labor. The employer is a monopsony. The firm will maximize its profit by hiring 400 hours of labor because at that point

The demand for a productive resource, not for its own sake, but for use in the production of goods and services is called a