Exam 18: Markets for Factors of Production

The Brown's Egg store in Lethbridge Alberta hires workers to paint eggs. The price of an egg is $2.50. The value of marginal product of this store's fifth worker is $25. The marginal product of the fifth worker is

A shift in a firm's demand curve for labour occurs for all of the following reasons except a change in

If the desire for leisure increased, the wage rate would

Use the table below to answer the following questions. Table 18.2.1 -Refer to Table 18.2.1. If the firm can sell all the output it wants for the price of $5 a unit, what is the profit-maximizing number of workers if the wage rate is $30?

Use the table below to answer the following questions. Table 18.2.3 -Emperor Spring Rolls produces spring rolls. The market for spring rolls is perfectly competitive, and the price of a spring roll is $3.50. The labour market is competitive, and the wage rate is $28 a day. Table 18.2.3 shows the workers' total product schedule. To maximize its profit, Emperor produces ________ spring rolls a day.

Use the table below to answer the following questions. Table 18.2.3 -Emperor Spring Rolls produces spring rolls. The market for spring rolls is perfectly competitive, and the price of a spring roll is $3.50. The labour market is competitive, and the wage rate is $28 a day. Table 18.2.3 shows the workers' total product schedule. To maximize its profit, Emperor hires ________ workers a day.

New technology has allowed oil to be pumped from much deeper offshore oil fields than before. For example, 28 deep ocean rigs operate in the deep waters of the Gulf of Mexico. Deep ocean sources have ________ the world price of oil. Those who benefit from drilling for oil in the Gulf of Mexico are ________.

Choose the statement that is incorrect.

A monopsony exists when there is

Use the figure below to answer the following questions. Figure 18.3.1 -Refer to Figure 18.3.1. This figure shows the value of marginal product of labour curve, the labour supply curve, and the marginal cost of labour curve. If this labour market is competitive, the quantity of labour employed is

The value of marginal product of labour is the revenue

If a strike or lockout occurs in a bilateral monopoly situation, it is usually because

Use the information below to answer the following questions. Fact 18.3.1 In Modern Rarity, Workers Form Union at Small Chain In New York's low-income neighbourhoods, labour unions have virtually no presence. But after a year-long struggle, 95 workers at a chain of 10 sneaker stores have formed a union. After months of negotiations, the two sides signed a three-year contract that sets the wage rate at $7.25 an hour. Source: The New York Times, February 5, 2006 -Refer to Fact 18.3.1. Labour unions are scarce in New York's low-income neighbourhoods because there are

If the price of the firm's output decreases, the value of marginal product curve

The demand curve for labour will shift rightward as a result of

A technological change that increases the value of marginal product of labour shifts the labour

During the past year, Teddy had a part-time job at which he is willing to work 30 hours each week. During Teddy's annual review, his boss grants him an 8 percent increase in his wage. As a result of the wage increase, Teddy is now willing to work 25 hours each week. Teddy's opportunity cost of ________ has risen and for Teddy the substitution effect of the wage hike is ________ the income effect.

Natural resources that are depleted as they are used

All of the following statements are correct except

Firms hire labour