Exam 18: The Markets for the Factors of Production

Table 18-11 Consider the following daily production data for MadeFromScratch, Inc. MadeFromScratch sells cupcakes for $2 each and pays the workers a wage of $325 per day. -Refer to Table 18-11. Assuming MadeFromScratch is a competitive, profit-maximizing firm, how many workers will the firm hire?

Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, the equilibrium quantity in the labor market for computer programmers

Suppose that the market for labor is initially in equilibrium. If the firm employs labor-saving technology, the equilibrium wage

Labor-saving technological advances decrease the marginal productivity of labor.

If a worker respond to an increase in the opportunity cost of leisure by taking more leisure, then her labor supply curve is

If Ernie's individual labor supply curve is upward sloping, then Ernie responds to an increase in the

Table 18-1 -Refer to Table 18-1. What is the marginal product of the second worker?

Suppose that Chloe opens a dog grooming business in a local shopping center. Which of the following would be an example of a factor of production used by Chloe?

An upward-sloping labor supply curve means that

Suppose that technological progress increases the productivity of teachers. Which of the following accurately describes the labor market for teachers after the technological change? Equilibrium wages will

Which of the following would increase the demand for labor?

Suppose the wage earned by pear pickers suddenly rises. Which of the following effects would we most likely observe as a result?

Sunshine's Organic Market sells organic produce. Assume that labor is the only input that varies for the firm. The store manager has determined that if she hires 9 workers, the store can sell 200 pounds of produce per day. If she hires 10 workers, the store can sell 230 pounds of produce per day. The store earns $4 for each pound of produce that it sells, and the manager pays each worker $60 per day. Which of the following is correct?

Suppose that the labor market for life guards is initially in equilibrium. Whistles are an important safety tool that life guards use as a part of their jobs. A fire destroys the largest factory that produces whistles. What happens to the equilibrium wage and quantity of life guards?

Table 18-3 -Refer to Table 18-3. For Firm A, the marginal product of labor is

Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, what effect did this process have on the labor market for computer programmers? The equilibrium wage

When firms are able to increase the amount of physical capital available to workers, the

Among the people who are characterized below, who has the highest opportunity cost of leisure?

Figure 18-1 On the graph, L represents the quantity of labor and Q represents the quantity of output per week. -Refer to Figure 18-1. Suppose the firm sells its output for $12 per unit, and it pays each of its workers $700 per week. The value of the marginal product of the fifth worker is

Competitive firms decide how much output to sell by producing output until the price of the good equals