A profit-maximizing firm employs resources to the point where:
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decline more rapidly than that of a purely competitive seller.
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Other things equal, we would expect the labor demand curve of a monopolistic seller to:
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should hire more labor because this will increase profits.
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A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm:
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related to the demand for the product or service labor is producing.
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When economists say that the demand for labor is a derived demand, they mean that it is:
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the derived demand for labor.
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The demand for airline pilots results from the demand for air travel. This fact is an example of:
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the marginal products of successive workers must be sold at lower prices.
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If a firm is selling in an imperfectly competitive product market, then:
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the output effect is greater than the substitution effect.
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Assume the price of capital falls relative to the price of labor and, as a result, the demand for labor increases. Therefore:
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of all of these reasons. - ( resource prices are a major determinant of money incomes./ resource prices allocate scarce resources among alternative uses. / resource prices, along with resource productivity, are important to firms in minimizing their costs. )
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Resource pricing is important because:
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amount by which the extra production of one more worker increases a firm's total revenue.
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Marginal revenue product measures the:
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slopes downward because of diminishing marginal productivity.
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1The labor demand curve of a purely competitive seller:
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productivity of the resource increases.
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Employers will hire more units of a resource if the:
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such that the maximization of profits always entails the least-cost combination of inputs.
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The profit-maximizing and the least-cost combination of inputs are:
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slopes downward because the marginal product of successive workers declines.
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2The labor demand curve of a purely competitive seller:
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the MRP exceeds the wage rate.
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A competitive employer should hire additional labor as long as:
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the amount an additional worker adds to the firm's total output.
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Marginal product is:
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a bilateral monopoly
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If a single large employer bargains with an inclusive union, the resulting labor market model can best be described as:
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perfectly elastic
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A firm operating in a purely competitive resource market has a resource supply curve that is
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only organize workers who have a particular skill
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Craft Unions:
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a monopsonistic employer bargains with an inclusive union.
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Bilateral monopoly occurs where:
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confronts a marginal resource (labor) cost that is greater than the wage rate.
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A monopsonistic employer:
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output per worker
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Over the long run, real earnings per worker can increase only at about the same rate as the economy's rate of growth of:
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A greater incentive for sales people to engage in unethical or fraudulent sales practices that may eventually cause legal problems for the firm
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one of the potential negative side-effects of pay in the form of sales commissions is:
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are wage differences that compensate for differences in the desirability of jobs
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Compensating differences in wages:
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Improvements in technology
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Increases in the productivity of labor result partly from:
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Elastic
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When the elasticity coefficient for resource demand is greater than one, resource demand is:
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inelastic.
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When the elasticity coefficient for resource demand is less than one, resource demand is:
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The demand for the product or service that it helps produce.
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The demand for a resource depends primarily on:
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is the firm's labor demand curve
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1The MRP curve for labor:
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marginal revenue product of each resource is equal to its price.
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Assuming a competitive resource market, a firm is hiring resources in the profit-maximizing amounts when the:
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is downsloping and shows the relationship between wage rates and the quantity of labor demanded
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2The MRP curve for labor:
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multiplying marginal product by product price
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For a firm selling its product in a purely competitive market, the marginal revenue product of labor can be found by:
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the marginal revenue product.
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The change in a firm's total revenue that results from hiring an additional worker is measured by:
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percentage change in resource quantity demanded divided by the percentage change in resource price.
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Elasticity of resource demand is measured by the:
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marginal revenue product of the second worker is $20.
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If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the:
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both because of diminishing returns and the necessity to lower price to sell more output.
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The labor demand curve of an imperfectly competitive seller is downsloping:
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multiplying marginal product by product price.
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Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:
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the increase in total resource cost associated with the hire of one more unit of the resource.
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Marginal resource cost is:
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output effect.
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A change in an input price will alter both production costs and the profit-maximizing output. Thus a decline in the price of capital will reduce production costs, increase the profit-maximizing output, and thereby increase the demand for labor. This describes the:
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