Question 1

Describe the factors that could cause an increase in the wage rate of workers.

Accepted Answer

Anything that increases the demand or re...

Question 2

An advance in technology which increases labor productivity will shift the:

Accepted Answer

A)   labor demand curve to the left.
B)   MFC curve to the left.
C)   MP curve downward.
D)   labor demand curve to the right.E) A) and C)
F) All of the above

Question 3

If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:

Accepted Answer

A)   there isn't enough room in the factory.
B)   there isn't an infinite number of workers.
C)   wages would have to increase.
D)   they stop when MRP = wageE) C) and D)
F) A) and B)

Question 4

A monopsony owner believes that hiring an additional worker would increase the company's revenue by $150 per day. We can conclude that the monopsony pays its workers:

Accepted Answer

A)   more than $150 per day.
B)   exactly $150 per day.
C)   less than $150 per day.
D)   exactly $75 per day.E) A) and D)
F) A) and C)

Question 5

Explain why a monopsonist's marginal factor cost curve must lie above its labor supply curve.

Accepted Answer

The labor supply curve shows the wage ra...

Exam 11: Labor Markets

Describe the factors that could cause an increase in the wage rate of workers.

Correct Answer
verified
Anything that increases the demand or re...
View Answer

An advance in technology which increases labor productivity will shift the:

Correct Answer
verified

If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:

Correct Answer
verified

A monopsony owner believes that hiring an additional worker would increase the company's revenue by $150 per day. We can conclude that the monopsony pays its workers:

Correct Answer
verified

Explain why a monopsonist's marginal factor cost curve must lie above its labor supply curve.

Correct Answer
verified
The labor supply curve shows the wage ra...
View Answer

Exam 11: Labor Markets

Describe the factors that could cause an increase in the wage rate of workers.

Correct AnswerverifiedAnything that increases the demand or re...View AnswerShow Answer

An advance in technology which increases labor productivity will shift the:

Correct AnswerverifiedShow Answer

If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:

Correct AnswerverifiedShow Answer

A monopsony owner believes that hiring an additional worker would increase the company's revenue by $150 per day. We can conclude that the monopsony pays its workers:

Correct AnswerverifiedShow Answer

Explain why a monopsonist's marginal factor cost curve must lie above its labor supply curve.

Correct AnswerverifiedThe labor supply curve shows the wage ra...View AnswerShow Answer

Correct Answer
verified
Anything that increases the demand or re...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The labor supply curve shows the wage ra...
View Answer