Question 1

When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals the wage, it also produces output up to the point at which marginal cost is equal to __________.

Accepted Answer

The answer of When a competitive firm hires labor up...

Question 2

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. If the shop charges $120 per repair, then what is the value of the marginal product of the third mechanic?

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 3

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. What is the marginal product of the second mechanic?

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 4

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. Suppose the shop pays each of its mechanics $210 per day. Over what interval of prices (that is, charges per car repair, P) would the shop maximize its profit by hiring exactly 3 mechanics? (Determine  
and  
such that  
.)

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 5

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. The relationship depicted on the graph is called a _______ function.

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 6

A competitive, profit-maximizing pays its workers a wage of $200 per day and it sells its output for $10 per unit. Determine the marginal product, on a daily basis, of the last worker hired.

Accepted Answer

The answer of A competitive, profit-maximizing pays its workers a...

Question 7

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. What is the marginal product of the third mechanic?

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 8

What are the typical effects on the labor market of technological progress?

Accepted Answer

The answer of What are the typical effects on the...

Question 9

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic?

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 10

What is the relationship between the marginal product of labor and the value of the marginal product of labor?

Accepted Answer

The answer of What is the relationship between the marginal...

Question 11

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. Suppose the shop charges $125 per repair. Over what interval of wages, W, would the shop maximize its profit by hiring exactly 4 mechanics? (Determine  
and  
such that  
.)

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 12

The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

Accepted Answer

The answer of The substantial increases in output per worker...

Question 13

How does technological advance affect the demand for labor?

Accepted Answer

The answer of How does technological advance affect the demand...

Question 14

Jen's wage decreased, and she responded by enjoying more hours of leisure per day. Is Jen's behavior consistent with an upward-sloping labor-supply curve?

Accepted Answer

The answer of Jen's wage decreased, and she responded by...

Question 15

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. If the shop charges $150 per repair and pays each of its mechanics a wage of $700 per day, then what is the marginal profit of the second mechanic?

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 16

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. If the shop charges $120 per repair and pays each of its mechanics a wage of $400 per day, then what is the marginal profit of the third mechanic?

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 17

Does history suggest that most technological progress is labor-saving or labor-augmenting?

Accepted Answer

The answer of Does history suggest that most technological progress...

Question 18

A competitive, profit-maximizing pays its workers a wage of $294 per day. The marginal product of the last worker is 35 units of output. What is the firm's marginal cost of producing its last unit of output?

Accepted Answer

The answer of A competitive, profit-maximizing pays its workers a...

Question 19

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. 
-Refer to Figure 18-1. The production process depicted on the graph exhibits _______ marginal product of labor.

Accepted Answer

The answer of Figure 18-1. The figure shows the relationship...

Question 20

A competitive, profit-maximizing firm hires labor up to the point at which the wage is equal to the __________.

Accepted Answer

The answer of A competitive, profit-maximizing firm hires labor up...

Quiz 18: The Markets for the Factors of Production

When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals the wage, it also produces output up to the point at which marginal cost is equal to __________.

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. If the shop charges $120 per repair, then what is the value of the marginal product of the third mechanic?

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. What is the marginal product of the second mechanic?

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. The relationship depicted on the graph is called a _______ function.

A competitive, profit-maximizing pays its workers a wage of $200 per day and it sells its output for $10 per unit. Determine the marginal product, on a daily basis, of the last worker hired.

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. What is the marginal product of the third mechanic?

What are the typical effects on the labor market of technological progress?

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. If the shop charges $150 per repair, then what is the value of the marginal product of the second mechanic?

What is the relationship between the marginal product of labor and the value of the marginal product of labor?

The substantial increases in output per worker over the last 50 or so years are largely explained by __________.

How does technological advance affect the demand for labor?

Jen's wage decreased, and she responded by enjoying more hours of leisure per day. Is Jen's behavior consistent with an upward-sloping labor-supply curve?

Does history suggest that most technological progress is labor-saving or labor-augmenting?

A competitive, profit-maximizing pays its workers a wage of $294 per day. The marginal product of the last worker is 35 units of output. What is the firm's marginal cost of producing its last unit of output?

Figure 18-1. The figure shows the relationship between the number of mechanics hired and the number of car repairs performed per day at a car-repair shop. -Refer to Figure 18-1. The production process depicted on the graph exhibits _______ marginal product of labor.

A competitive, profit-maximizing firm hires labor up to the point at which the wage is equal to the __________.