AP Micro Unit 5 Homework

Front

A monopsonistic labor market has a

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single employer of labor

Front

The graph above shows a monopsony labor market. In the absence of any regulations, which of the following represents the number of workers the firm will hire and the wage rate it will offer to those workers? Number of Workers: 15, Wage Rate: $30; Number of Workers: 20, Wage Rate: $20; Number of Workers: 20, Wage Rate: $40

Back

Number of Workers: 20, Wage Rate: $20

Front

The marginal revenue product of labor is the

Back

additional revenue a firm earns when it employs an additional unit of labor

Front

A contractor is employing labor and capital to build an office complex. At the current mix of inputs, the marginal product of labor is 300 square feet per day, and the marginal product of capital is 900 square feet per day. The price of labor is $100 per day, and the price of capital is $300 per day. To hire inputs in a cost-minimizing way, the firm should...

Back

make no changes to the mix of inputs

Front

ABC Limited, Inc., sells its product in a perfectly competitive market for a price of $75. Labor is the only factor cost, and the firm is currently earning profits. If ABC hires one more worker and output increases by 5 units per day, the firm's profits will...

Back

remain unchanged

Front

According to the information in the table above, the twelfth worker would increase the hourly profit by.

Back

$1.30

Front

A firm’s demand curve for labor is equal to a segment of its...

Back

marginal revenue product curve

Front

The graph above shows the marginal revenue product curve and supply curve of labor for a firm. The introduction of new management techniques dramatically increases workers productivity. Which of the following changes is most likely to occur?

Back

The marginal revenue product curve will shift to the right, increasing wage rate.

Front

Assume that firms providing health-care services to older people operate in a perfectly competitive market. What must happen in the market for health-care workers if there is an increase in the number of older people in a country?

Back

The demand for health-care workers will increase.