AP Microeconomics Unit 5

Front

What is the rule to profit maximize when hiring workers?

Back

MRP = MFC

Front

What is the shape of the supply curve for workers in a perfectly competitive market?

Back

horizontal

Front

A monopsony pays _____ & hires ____ than a perfectly competitive firm.

Back

less & less

Front

Assume that firms sell their output in a perfectly competitive product market and hire labor in a perfectly competitive labor market. If all other factors remain constant, an increase in the demand for the firms’ product will result in which of the following changes in the labor market?

Back

The demand curve for labor will shift to the right.

Front

If a large number of unskilled workers enter the labor market, which of the following is most likely to occur in the labor market for unskilled workers?

Back

The supply curve will shift to the right and the wage rate will decrease.

Front

A profit-maximizing firm will continue to hire workers until the marginal revenue product of labor is equal to the:

Back

marginal factor cost

Front

Which of the following would cause the wage for computer programmers to increase? A decrease in the amount of physical capital per computer programmer, An improvement in the education of computer programmers, An increase in the social prestige associated with being a computer programmer, A decrease in the value that computer programmers place on leisure, A minimum wage set below the equilibrium wage in the market for computer programmers

Back

An improvement in the education of computer programmers

Front

Which of the following is a firm’s demand for labor? the firm’s marginal factor cost (MFC) curve, the firm’s long-run average total cost (LRATC) curve, the firm’s marginal revenue product of labor (MRP_L) curve, the firm’s marginal revenue (MR) curve, the firm’s marginal revenue product of capital (MRP_K) curve

Back

the firm’s marginal revenue product of labor (MRP_L) curve

Front

In order to hire the least-cost combination of labor and capital, the firm must do which of the following?

Back

Find the combination of labor and capital where the marginal product of labor divided by the price of labor is equal to the marginal product of capital divided by the price of capital.

Front

In the monopsonistic labor market shown in the diagram, which indicates the number of workers the firm will hire and the wage rate it will pay? Options: L1, W1, L1, W3, L2, W2, L1, W2

Back

L1, W1