Exam 11: Markets for Factors of Production

The figure below shows output of a firm at different number of workers. Payment to workers is the only variable cost of the firm. -Refer to the figure above.If the price of the output is $3.00 per unit and the wage is $9.00 per worker,the firm's optimal choice in the short run is to hire ________ workers.

Roadies who travel with bands on tour setting up and taking down equipment typically earn relatively low pay and work long and irregular hours.This finding is consistent with ________.

What are the factors that affect the supply curve of labor?

Suppose the market for labor consists of only three workers: Alex, Anna, and Jim. The following table shows the labor supplied by the three workers at different wage rates. -Refer to the table above.If the market supply of labor per week when the wage rate is $100 is 125 hours,the labor supplied by Jim per month at the market wage rate is ________.

If the value of the marginal product of physical capital is $30 and the price of the final good that is produced using the physical capital is $15,the marginal product of the physical capital used is ________.

Scenario: Consider a firm that produces and sells a good for the price of $2 in a perfectly competitive market. The following table shows the relationship between the number of workers and the output of this firm. Suppose the labor market from which this firm hires its employees is competitive. -Refer to the scenario above.What is the marginal product of labor when the second worker is hired?

Which of the following statements is true?

The negative slope of the labor demand curve can be attributed to ________.

Which of the following is likely to lead to a rightward shift in the demand curve for labor in the coffee producing industry?

If the marginal product of a unit of physical capital is 10 units of output and the final good that the physical capital is used to produce is sold for $5,the value of the marginal product of physical capital equals ________.

What is a factor of production? Why are the factors of production said to have a derived demand?

Assume that a perfectly competitive firm hires workers from a perfectly competitive market for labor.The marginal product of a worker is 10 units per day.If the good that the worker produces is sold for $5,what is the maximum daily wage that should be offered to the worker?

The market price of physical capital is $10,and the market wage rate is $5.If a firm is optimally hiring an additional unit of physical capital,the value of the marginal product of physical capital is ________.

Other things remaining the same,if an industry introduces labor-complementary technology in production,the demand curve for labor in that industry is likely to ________.

Advances in computing power are an example of ________ technological changes.

Other things remaining the same,which of the following is likely to happen if an industry introduces labor-saving technology in production?

Assume that both the goods and the labor market are perfectly competitive.If at equilibrium,the wage rate is $20 per hour and the marginal product of labor is 4 units,the firm's marginal cost must be equal to ________.

Which of the following is an example of a factor of production?

Other things remaining the same,which of the following is likely to happen if the price of cars decreases?

Refer to the scenario above.Suppose we know that the number of women working increased,as did the market wage earned by women.These facts are consistent with ________.