If a profit-maximizing firm reduces its employment of workers, then the value of the marginal product...
If a profit-maximizing firm reduces its employment of workers, then the value of the marginal product exceeds the market wage.
true or false
A change in the wages of waiters and waitresses is a direct cause of a shift in the labor demand curve for waiters and waitresses.
true or false
A decrease in the final product price could decrease labor demand because demand for labor is a derived demand.
true or false
Homework Answers
Ans) 1) False. If VMPL (Value of marginal product of labour) is more than wages, firm will employ more workers as it is getting benefit. But if wages exceeds VMPL, firm will not employ workers as cost will exceed benefit.
(VMPL/MRP = marginal product of labour × price)
MRP is marginal revenue product
2) False. Change in wages cause movement along the demand curve of labours (like change in price caused movement along demand curve).
3) True. Demand for labour is derived demand. As when price of product falls, firm will reduce the quantity supplied and will cut the demand for labour.
Add Answer to:
If a profit-maximizing firm reduces its employment of workers,
then the value of the marginal product...
38. An increase in the supply of labor с.increases the value of ~ginal Product of er...
38. An increase in the supply of labor с.increases the value of ~ginal Product of er and enes D. decreases the value of the marginal product of labor and increases the wage the wage. 39. A decrease in the demand for fish A. decreases the value of the marginal product of fishemen reduces their wage, and reduces employment in the fishing industry employment in the fishing industry employment in the fishing industry employment in the fishing industry B. increases the...
சம் VU labor markets, firms hire: additional workers as long as the marginal produ s as...
சம் VU labor markets, firms hire: additional workers as long as the marginal produ s as long as the marginal product of labor is positive. the amount of labor needed to produce the profit-maximizing the amount of labor needed to produce the revenue-max the number of workers they can afford given a fixed budget. ce the profit-maximizing level of output. produce the revenue-maximizing level of output. Ceteris paribus, the value of the marginal product of labor (demand for labor by...
The table below shows the marginal product of labor at various employment levels. Assume this firm...
The table below shows the marginal product of labor at various employment levels. Assume this firm is a monopoly, and the marginal revenue is in the table below. Labor Marginal Product of Labor Marginal Revenue 1 10 20 2 8 14 3 7 10 4 5 8 5 3 4 6 1 2 What is the marginal revenue product of labor at each level of labor? If the firm operates in a perfectly competitive labor market where the going...
Factor Market Practice FRQ Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection firm. Cleanlt hires workers in a perfectly Draw side-by-side graphs for...
Factor Market Practice FRQ Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection firm. Cleanlt hires workers in a perfectly Draw side-by-side graphs for the labor market and for Cleanit and show each of the following. a. e market wage, labeled Wm, and the quantity of workers hired in the market, labeled Lm i. The marginal factor (resource) cost curve, labeled MFC ili. The marginal revenue product curve, labeled MRP iv. The wage paid by the firm, labeled...
The table below shows the marginal product of labor at various employment levels. Assume this firm...
The table below shows the marginal product of labor at various employment levels. Assume this firm is part of a perfectly competitive market and that the market price for the good is $10. Labor Marginal Product of Labor 1 10 2 8 3 7 4 5 5 3 6 1 What is the value of the marginal product of labor at each level of labor? If the firm operates in a perfectly competitive labor market where the going market wage...
Question 55 1 pts If the value of the marginal product of labor exceeds the wage,...
Question 55 1 pts If the value of the marginal product of labor exceeds the wage, then the firm could increase profit by hiring additional labor. increase profit by reducing the amount of labor hired. increase revenue by lowering output. O reduce total cost by hiring additional workers. Question 56 1 pts Diminishing marginal product suggests that
5. (8 marks) Wh wage equals the value of marginal product? Why is the short run...
5. (8 marks) Wh wage equals the value of marginal product? Why is the short run demand curve for labour downward sloping? y does a profit maximizing firm hire workers up to the point where the
In a noncompetitive labor market, the firm pays a wage that is less than the workers’...
In a noncompetitive labor market, the firm pays a wage that is less than the workers’ value of marginal product because the labor supply curve is above the marginal cost of labor curve. the firm’s objective is to minimize the wage rather than to maximize profits. the marginal cost of labor curve is above the labor supply curve. labor is supplied inelastically. the firm’s labor demand curve is downward-sloping.
On a separate sheet of paper, draw a labor supply and demand diagram for a single...
On a separate sheet of paper, draw a labor supply and demand diagram for a single firm in a competitive labor market. Remember, a competitive firm can hire as many workers as it likes at the market wage w* so supply of labor to the firm is horizontal. Label your axes, your supply and demand curves, and labor market equilibrium, w*, E*. On a second graph, draw a labor supply and demand diagram for a non-discriminating monopsonist, where the monopsonist...
1. An increase in the supply of labor, the variable factor of production, will cause a monopsonist's: a. marginal revenue product curve to shift up b. marginal revenue product curve to shift...
1. An increase in the supply of labor, the variable factor of production, will cause a monopsonist's: a. marginal revenue product curve to shift up b. marginal revenue product curve to shift down arginal factor cost curve to shift up marginal factor cost curve to shift down ARP e. both "a" and "c" are correct answers f. both "b" and "c" are correct answers g. both "a" and "d" are correct answers h. both "b" and "d" are correct answers...
38. An increase in the supply of labor с.increases the value of ~ginal Product of er and enes D. decreases the value of the marginal product of labor and increases the wage the wage. 39. A decrease in the demand for fish A. decreases the value of the marginal product of fishemen reduces their wage, and reduces employment in the fishing industry employment in the fishing industry employment in the fishing industry employment in the fishing industry B. increases the...
சம் VU labor markets, firms hire: additional workers as long as the marginal produ s as long as the marginal product of labor is positive. the amount of labor needed to produce the profit-maximizing the amount of labor needed to produce the revenue-max the number of workers they can afford given a fixed budget. ce the profit-maximizing level of output. produce the revenue-maximizing level of output. Ceteris paribus, the value of the marginal product of labor (demand for labor by...
Factor Market Practice FRQ Cleanlt is a competitive labor market. perfectly competitive, profit-maximizing trash collection firm. Cleanlt hires workers in a perfectly Draw side-by-side graphs for the labor market and for Cleanit and show each of the following. a. e market wage, labeled Wm, and the quantity of workers hired in the market, labeled Lm i. The marginal factor (resource) cost curve, labeled MFC ili. The marginal revenue product curve, labeled MRP iv. The wage paid by the firm, labeled...
Question 55 1 pts If the value of the marginal product of labor exceeds the wage, then the firm could increase profit by hiring additional labor. increase profit by reducing the amount of labor hired. increase revenue by lowering output. O reduce total cost by hiring additional workers. Question 56 1 pts Diminishing marginal product suggests that
5. (8 marks) Wh wage equals the value of marginal product? Why is the short run demand curve for labour downward sloping? y does a profit maximizing firm hire workers up to the point where the
1. An increase in the supply of labor, the variable factor of production, will cause a monopsonist's: a. marginal revenue product curve to shift up b. marginal revenue product curve to shift down arginal factor cost curve to shift up marginal factor cost curve to shift down ARP e. both "a" and "c" are correct answers f. both "b" and "c" are correct answers g. both "a" and "d" are correct answers h. both "b" and "d" are correct answers...
Most questions answered within 3 hours.
-
Which of the following pairs of ions have the same electron
configuration?
I: Br− and Se2−...
asked 41 minutes ago -
The Foremost Composite Materials Company is planning a two-day
sales conference for October 19-20. The conference...
asked 1 hour ago -
3) Illustrate the observed pattern of relatedness of organisms
versus adaptations to specific conditions. This means...
asked 1 hour ago -
In winter a lake has a 0.35 m thick ice layer over 1.10 m of
water....
asked 2 hours ago -
Assuming the following has been encrypted with a Vigenere cipher
below, use the method(s) and assumptions...
asked 2 hours ago -
How would I use switch statements to write a program that will
take an input of...
asked 2 hours ago -
Imagine a reaction in which methane gas combusts at a constant
pressure of 1 atm and...
asked 2 hours ago -
Two parallel wires (each 12 m in length) are separated by a
distance of 0.065 m...
asked 2 hours ago -
Suppose there were three masses at the corner of uniform
equilateral triangle. The masses are m1...
asked 2 hours ago -
Situation: A building that is 618 m above the ground floor. How
many times would a...
asked 2 hours ago -
help me and discuss one successful and one
unsuccessful international company/busines in Indonesia.whyit
succeed and why...
asked 2 hours ago -
I- Choose the best answer
Which of the following statements about the structure and
packaging of...
asked 2 hours ago