5.1
This is the cost to hire an additional worker.
What is Marginal Resource Cost (MRC)
Also acceptable: MFC
People want a new iPhone, so Apple invests in technology and workers. This is an example of...
Derived demand
In a perfectively competitive labor market, the supply of labor is...
Acceptable answers:
Wage
MRC
Perfectly Elastic
A single firm that has market power in the labor market is known as...
A monopsony
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Russia has this many time zones
11
When a firm is looking to hire, they should continue to hire until...
MRP = MRC
Why does an experienced mechanic (most likely) earn a higher wage than an inexperienced mechanic?
Experienced mechanic are more valuable to a firm because they have more human capital (skills and knowledge) and they have a higher marginal product than inexperienced mechanics.
The least-cost hiring rule refers to...
The combination of resources that minimize total costs.
Which of the following is NOT a characteristic of a monopsony?
A) There is one firm hiring workers
B) The firm must increase the wage to increase the quantity of labor supplied
C) The MRC for the firm is upward sloping, but the MRP for the market is perfectly elastic
D) Workers are immobile
E) The firm is a wage maker
C
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The year Netflix was founded
1997
What is the total revenue if you were to hire 4 workers?
$238
If a large number of unskilled workers enter the labor market, what will happen to the supply and wage in the labor market?
Supply shifts right and the wage decreases
Graph what would happen to the wage and quantity in the market and firm if new workers entered the industry?
Supply would shift right and wage would decrease
The marginal labor cost for a monopsonist is above the supply of labor. Why?
Hiring more workers requires increasing the wage for all workers hired; not just the last worker hired. So the cost of hiring additional workers (MRC) is higher than the wage workers are paid (the supply).
July 20th, 1969, Apollo ___ landed on the moon
11
How many workers should you hire?
5
An increase in the demand for new houses will most likely cause which of the following?
an increase in the demand for plumbers
Bert's Balloon's employs only labor and capital in its production process. Which of the following best describes the optimal combination of inputs for Bert?
A. The marginal product of labor is equal to the marginal product of capital
B. The total product of labor is equal to the total product of capital
C. The marginal products of labor and capital are both zero
D. All marginal products are equal to all average products
E. The marginal product per dollar spent on labor is equal to the marginal product per dollar spent on capital
E
Identify the quantity of labor and the wage that this monopsonistic firm would pay it's workers.
labor = 50; $25
Even thought less than 1000 are inhabited, with 260,000+, this country has the most islands in the world
Sweden
If minimum wage increased to $30, how many workers would you hire?
3
Use S&D analysis to analyze the market for Petroleum Engineers:
1) Before Change
2) The Change
3) New price and quantity
- An increase in the number of engineering schools
- A decrease in the number of students that attend engineering schools.
Graph
The marginal product of labor equals 240 units of output.
The marginal product of capital equals 500 units of output.
The price of labor is $80 per person
The price of capital is $160 per unit.
The data above describes productivity and cost information for FlippyBurgers, a monopolistically competitive firm that buys its labor and capital in perfectly competitive input markets. Given the information above, which of the following is true?
A. The firm is producing its current level of output with the least-cost combination of labor and capital
B. The firm is maximizing profits with its current combination of inputs
C. The firm can reduce the cost of its current level of output by laying off workers and employing more capital
D. The firm can reduce its input costs by substituting 2 units of labor for every 1 unit of capital
E. The firm can increase its output by substituting 2 units of labor for every 1 unit of capital
C
Complete the chart and identify what this monopsonistic firm's MRC would be after hiring 8 workers.
$36
Named in honor of King George III. George was the original name for this planet
Uranus