Question 1

For a competitive firm the marginal revenue product of labor is usually downward sloping.

Accepted Answer

A) True 
 B)False

Question 2

If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly,then the total amount of deadweight loss in the industry

Accepted Answer

A)  will increase. 
B)  will decrease. 
C)  will remain unchanged. 
D)  cannot be determined. 
A)  will increase. 
B)  will decrease. 
C)  will remain unchanged. 
D)  cannot be determined.

Question 3

In a perfectly competitive resource market the Marginal Revenue Product Curve is

Accepted Answer

A)  vertical. 
B)  horizontal. 
C)  downward sloping. 
D)  upward sloping. 
A)  vertical. 
B)  horizontal. 
C)  downward sloping. 
D)  upward sloping.

Question 4

If the supply of labor to a monopsonist is everywhere unit elastic,and the marginal expenditure equals $1,then the wage will equal

Accepted Answer

A)  $0.50. 
B)  $0.75. 
C)  $1.00. 
D)  $2.00. 
A)  $0.50. 
B)  $0.75. 
C)  $1.00. 
D)  $2.00.

Question 5

The long-run labor demand curve is relatively flatter than the short-run labor demand curve because,in the short run,

Accepted Answer

A)  the wage rate is fixed. 
B)  the firm cannot vary the amount of capital used. 
C)  the firm is a price taker. 
D)  All of the above. 
A)  the wage rate is fixed. 
B)  the firm cannot vary the amount of capital used. 
C)  the firm is a price taker. 
D)  All of the above.

Question 6

The marginal expenditure curve of a monopsonist

Accepted Answer

A)  lies above the market supply curve. 
B)  lies between the market demand curve and the market supply curve. 
C)  lies parallel to the market demand curve. 
D)  lies below the market supply curve. 
A)  lies above the market supply curve. 
B)  lies between the market demand curve and the market supply curve. 
C)  lies parallel to the market demand curve. 
D)  lies below the market supply curve.

Question 7

Which of the following would be most able to act like a monopsonist?

Accepted Answer

A)  a hospital in a small isolated town 
B)  a hospital in a very big city 
C)  a law firm in Washington, D.C. 
D)  a computer software firm in Silicon Valley 
A)  a hospital in a small isolated town 
B)  a hospital in a very big city 
C)  a law firm in Washington, D.C. 
D)  a computer software firm in Silicon Valley

Question 8

The amount of labor a firm employs depends on

Accepted Answer

A)  the market wage. 
B)  the market price for the good produced. 
C)  Both A and B. 
D)  None of the above. 
A)  the market wage. 
B)  the market price for the good produced. 
C)  Both A and B. 
D)  None of the above.

Question 9

The difference between the marginal expenditure and the wage is greater when the supply curve of labor is

Accepted Answer

A)  less elastic at the monopsony optimum. 
B)  more elastic at the monopsony optimum. 
C)  more elastic than the demand curve. 
D)  The difference does not depend on any elasticity. 
A)  less elastic at the monopsony optimum. 
B)  more elastic at the monopsony optimum. 
C)  more elastic than the demand curve. 
D)  The difference does not depend on any elasticity.

Question 10

Which of the following labor markets is more likely to be competitive?

Accepted Answer

A)  Receptionists 
B)  Singers 
C)  Soccer players 
D)  Sculptors 
A)  Receptionists 
B)  Singers 
C)  Soccer players 
D)  Sculptors

Question 11

The labor supply curve for a monopsony is

Accepted Answer

A)  perfectly horizontal. 
B)  perfectly vertical. 
C)  upward sloping but not perfectly vertical. 
D)  downward sloping. 
A)  perfectly horizontal. 
B)  perfectly vertical. 
C)  upward sloping but not perfectly vertical. 
D)  downward sloping.

Question 12

In a perfectly competitive resource market the labor supply curve facing the single firm is

Accepted Answer

A)  vertical. 
B)  horizontal. 
C)  downward sloping. 
D)  upward sloping. 
A)  vertical. 
B)  horizontal. 
C)  downward sloping. 
D)  upward sloping.

Question 13

Suppose the labor market is competitive,the supply curve of labor is upward sloping,and the amount of capital is fixed.If the output market changes from a competitive market to a monopoly,what is the effect on its demand for labor? Explain.

Accepted Answer

A monopoly will decrease outpu

Question 14

The gap between the value a monopsony places on the last worker hired and the wage paid will increase when

Accepted Answer

A)  the supply curve becomes more elastic at the optimum. 
B)  the supply curve becomes less elastic at the optimum. 
C)  the supply curve becomes horizontal. 
D)  the value of the last unit of labor hired is greater than the cost. 
A)  the supply curve becomes more elastic at the optimum. 
B)  the supply curve becomes less elastic at the optimum. 
C)  the supply curve becomes horizontal. 
D)  the value of the last unit of labor hired is greater than the cost.

Question 15

Suppose the marginal product of labor equals 1/L.If the wage is $1 per unit of labor,what is the short-run effect on the firm's labor demand if the price of output were to double?

Accepted Answer

A)  The firm will demand half as much labor. 
B)  The firm will demand twice as much labor. 
C)  The firm will demand the same quantity of labor. 
D)  There is not enough information to determine. 
A)  The firm will demand half as much labor. 
B)  The firm will demand twice as much labor. 
C)  The firm will demand the same quantity of labor. 
D)  There is not enough information to determine.

Question 16

If the supply of labor to a monopsonist is everywhere unit elastic,then the wage will equal

Accepted Answer

A)  the marginal expenditure. 
B)  one-half of the marginal expenditure. 
C)  the marginal revenue product of labor. 
D)  one. 
A)  the marginal expenditure. 
B)  one-half of the marginal expenditure. 
C)  the marginal revenue product of labor. 
D)  one.

Question 17

-The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit.If the wage is $5 per hour,a ten cent specific tax on the good sold by the firm will cause the firm to

Accepted Answer

A)  demand less labor. 
B)  demand more labor. 
C)  offer its workers only $4.90 per hour. 
D)  hire 0 units of labor per hour. 
A)  demand less labor. 
B)  demand more labor. 
C)  offer its workers only $4.90 per hour. 
D)  hire 0 units of labor per hour.

Question 18

A monopolist faces a market demand curve with a constant elasticity of -2.The monopoly's production function is Q = 4L and its output price is given by p.What is the monopoly's marginal revenue product of labor function?

Accepted Answer

A)  MRPL = 2p 
B)  MRPL = 4p 
C)  MRPL = 10 - 2p 
D)  MRPL = 5 + 3.5p 
A)  MRPL = 2p 
B)  MRPL = 4p 
C)  MRPL = 10 - 2p 
D)  MRPL = 5 + 3.5p

Question 19

Monopolies tend to

Accepted Answer

A)  hire more labor than duopolists or competitive firms, hence they are inefficient. 
B)  hire more labor than competitive firms but less than duopolists. 
C)  hire less labor than competitive firms because they produce at an inefficient level. 
D)  hire more labor because they produce at an inefficient level. 
A)  hire more labor than duopolists or competitive firms, hence they are inefficient. 
B)  hire more labor than competitive firms but less than duopolists. 
C)  hire less labor than competitive firms because they produce at an inefficient level. 
D)  hire more labor because they produce at an inefficient level.

Question 20

For a monopsonist,the labor supply curve is upward sloping because

Accepted Answer

A)  the monopsonist must compete with other industries for that labor. 
B)  the monopsonist requires that the laborers are highly skilled. 
C)  the monopsonist is the only buyer in that labor market. 
D)  the monopsonist restricts the supply of labor. 
A)  the monopsonist must compete with other industries for that labor. 
B)  the monopsonist requires that the laborers are highly skilled. 
C)  the monopsonist is the only buyer in that labor market. 
D)  the monopsonist restricts the supply of labor.

For a competitive firm the marginal revenue product of labor is usually downward sloping.

If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly,then the total amount of deadweight loss in the industry

In a perfectly competitive resource market the Marginal Revenue Product Curve is

If the supply of labor to a monopsonist is everywhere unit elastic,and the marginal expenditure equals $1,then the wage will equal

The long-run labor demand curve is relatively flatter than the short-run labor demand curve because,in the short run,

The marginal expenditure curve of a monopsonist

Which of the following would be most able to act like a monopsonist?

The amount of labor a firm employs depends on

The difference between the marginal expenditure and the wage is greater when the supply curve of labor is

Which of the following labor markets is more likely to be competitive?

The labor supply curve for a monopsony is

In a perfectly competitive resource market the labor supply curve facing the single firm is

Suppose the labor market is competitive,the supply curve of labor is upward sloping,and the amount of capital is fixed.If the output market changes from a competitive market to a monopoly,what is the effect on its demand for labor? Explain.

The gap between the value a monopsony places on the last worker hired and the wage paid will increase when

Suppose the marginal product of labor equals 1/L.If the wage is $1 per unit of labor,what is the short-run effect on the firm's labor demand if the price of output were to double?

If the supply of labor to a monopsonist is everywhere unit elastic,then the wage will equal

-The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit.If the wage is $5 per hour,a ten cent specific tax on the good sold by the firm will cause the firm to

A monopolist faces a market demand curve with a constant elasticity of -2.The monopoly's production function is Q = 4L and its output price is given by p.What is the monopoly's marginal revenue product of labor function?

Monopolies tend to

For a monopsonist,the labor supply curve is upward sloping because

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 15: Factor Markets

For a competitive firm the marginal revenue product of labor is usually downward sloping.

If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly,then the total amount of deadweight loss in the industry

In a perfectly competitive resource market the Marginal Revenue Product Curve is

If the supply of labor to a monopsonist is everywhere unit elastic,and the marginal expenditure equals $1,then the wage will equal

The long-run labor demand curve is relatively flatter than the short-run labor demand curve because,in the short run,

The marginal expenditure curve of a monopsonist

Which of the following would be most able to act like a monopsonist?

The amount of labor a firm employs depends on

The difference between the marginal expenditure and the wage is greater when the supply curve of labor is

Which of the following labor markets is more likely to be competitive?

The labor supply curve for a monopsony is

In a perfectly competitive resource market the labor supply curve facing the single firm is

Suppose the labor market is competitive,the supply curve of labor is upward sloping,and the amount of capital is fixed.If the output market changes from a competitive market to a monopoly,what is the effect on its demand for labor? Explain.

The gap between the value a monopsony places on the last worker hired and the wage paid will increase when

Suppose the marginal product of labor equals 1/L.If the wage is $1 per unit of labor,what is the short-run effect on the firm's labor demand if the price of output were to double?

If the supply of labor to a monopsonist is everywhere unit elastic,then the wage will equal

-The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit.If the wage is $5 per hour,a ten cent specific tax on the good sold by the firm will cause the firm to

A monopolist faces a market demand curve with a constant elasticity of -2.The monopoly's production function is Q = 4L and its output price is given by p.What is the monopoly's marginal revenue product of labor function?

Monopolies tend to

For a monopsonist,the labor supply curve is upward sloping because

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters