1. WidgetWorks operates in perfectly competitive markets. It hires an extra worker at $24 an hour...
1. WidgetWorks operates in perfectly competitive markets. It hires an extra worker at $24 an hour and each hour he produces six widgets, which will sell for $10 apiece. Is WidgetWorks at its profit-maximizing output level?
A. Yes, because it is making a profit on the widgets it has just produced
B. No, because the marginal revenue product is too high.
C. No, it should hire more workers and increase production.
D. No, it should hire fewer workers and increase production
2. WidgetWorks operates in perfectly competitive markets. It hires an extra worker at $24 an hour and each hour he produces six widgets, which will sell for $10 apiece. The worker’s marginal resource cost is
A. $24
B. $6
C. $60
D. $2.50
3. If the demand for a final product increases, then there will be which of the following?
A. An increase in the demand for inputs
B. An increase in the quantity demanded of its inputs
C. A decrease in the demand for inputs
D. A decrease in the quantity demanded of its inputs
4. A shift in the labor demand curve can be caused by all except which of the following?
A. A technological change
B. A change in the price of another input
C. A change in the demand for the product produced by the input
D. A change in the wage rate
Homework Answers
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1. WidgetWorks operates in perfectly competitive markets. It
hires an extra worker at $24 an hour...
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market and hires in a perfectly competitive labor market. assume
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A.
What rule should Leadbelly follow to hire the profit-maximizing
amount of labor?
B.
At the profit-maximizing level of output, the marginal product of
the last work or hired is 30 boxes of pencils per day. Calculate
the Price of a box of pencils.
C.
Draw a diagram of the...
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A company operates in a perfectly competitive market, selling
each unit of output for a price of $20 and paying the market wage
of $330 per day for each worker it hires.
In the following table, complete the column for the value of the
marginal product of labor (VMPL) at each quantity of workers.
Labor
Output
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Value of the Marginal Product of Labor
(Number of workers)
(Units of output)
(Units of output)...
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