Exam 18: Markets for Factors of Production

-Based on the production and revenue data in the above table, what is the marginal product of the 4th worker?

-In the above figure, what would be the wage paid and quantity of labor employed under competitive market conditions compared to monopsony conditions?

-The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre. How much labor will the firm hire if the market wage is $300 per day?

As the quantity of labor employed by a firm decreases, labor's ________ increases.

In a monopsony labor market, a minimum wage set equal to the competitive market equilibrium wage rate can ________ the wage rate and ________ employment.

What tools can unions use to increase the demand for union labor?

For a monopsony, the labor supply curve is

An auction of the leases to drill for natural gas on about 55,000 acres on the Roan Plateau in western Colorado in August 2008 generated nearly $114 million, a record for onshore energy lease sales in the lower 48 states. What is the most likely reason companies are leasing this land?

The supply of land is

If the value of marginal product of a factor of production exceeds the price of the factor, the

For the past year, Teddy has had a part-time job at which he is willing to work 10 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 15 hours each week. Teddy's opportunity cost of ________ has risen and because for Teddy the substitution effect of the wage hike is ________ than the income effect.

-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?

Joe manages a company that produces lawn mowers. Joe knows that the value of marginal product

If the interest rate is 4 percent, the present value of $10,000 to be received two years from today is about

The labor supply curve has a positive slope if the

Explain why a monopsony's marginal cost of labor is greater than the wage rate.

Sandy's Shiny Car is a perfectly competitive car wash service. The table above shows Sandy's total product schedule. Sandy can sell as many washes as she chooses at $5, and the wage rate of her workers is $60 a day. -a) Draw Sandy's workers' marginal product of labor curve. b) Draw Sandy's workers' value of marginal product curve. c) Find Sandy's demand for labor curve. d) How many workers does Sandy employ?

Jose owns a local coffee shop. When Jose calculates how his total revenue changes in response to hiring an extra worker, Jose is calculating the

If the wage that a competitive firm must pay its workers exceeds their value of marginal product, the firm will

At an interest rate of 5 percent, the present value of $1,000 to be received three years from today is