Exam 28: The Labor Market: Demand, Supply and Outsourcing

-Refer to the above table. Suppose the price of the good sold is $3 and the marginal factor cost of labor is $300, how many units of labor will the firm hire?

If a firm hires 215 workers it will produce 3,016 units of output. If it hires 216 workers it will produce 3,128 units of output. The marginal physical product of labor equals

Which of the following statements is FALSE about the long-run effects of outsourcing?

A single firm in a competitive labor market has a labor supply curve that is

-Refer to the above table. What does the marginal revenue product equal when 26 workers are hired a week?

Economic analysis indicates the net long-run effect of outsourcing for the United States is likely to be

-Refer to the above table. Suppose the firm hires 5 workers and the price of the good sold is $3. The marginal factor cost of labor must be

In a perfectly competitive labor market, the wage rate paid by the individual firm is

If the demand for a monopolist's product increases, its

If the demand for hamburgers increases, it is likely that the demand for fast-food employees will

-Refer to the above table. If the price of the product is $1.50, and the marginal factor cost of an additional unit of an input is $105, how many units of labor should be hired?

When the price of labor increases, the substitution effect will ________ the quantity of labor demanded and the output effect will ________ it.

What would make the demand for labor more elastic?

All of the following affect the demand elasticity for labor EXCEPT

Other things equal, a monopolist will hire

If the wage rate doesn't change but a profit-maximizing competitive firm hires fewer workers, we know that

The price elasticity of demand for a variable input will be more elastic in all the following cases EXCEPT

-In the above table, what is the marginal revenue product of the 2nd worker?

Explain the efficiency wage theory.

If the marginal revenue product of an input exceeds the marginal factor cost of the input, the firm