MICROECONOMICS - CONNECT ACCESS
21st Edition
ISBN: 9781264197071
Author: McConnell
Publisher: MCG
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Question
Chapter 17.3, Problem 2QQ
To determine
How Marginal productivity of labor is related to the demand for labor.
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Students have asked these similar questions
write down the optimization problem for a representative firm and show the profit-maximizing point graphically and discuss about it.
    b) Derive the rule of labor hiring for a firm that operates in the short-run.
When a firm is a perfect competitor in the product market, its demand curve for labor will _____ because the _____ product declines as additional workers are hired.
Select one:
a. slope downward; average
b. be horizontal; average
c. slope upward; marginal
d. slope downward; marginal
For a profit-maximizing competitive firm, the value of marginal product curve is
Â
A. always rising.
Â
B. falling only when marginal product is rising.
Â
C. the labor supply curve.
Â
D. the labor demand curve.
Chapter 17 Solutions
MICROECONOMICS - CONNECT ACCESS
Ch. 17.3 - Prob. 1QQCh. 17.3 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17.3 - Prob. 4QQCh. 17.A - Prob. 1ADQCh. 17.A - Prob. 2ADQCh. 17.A - Prob. 3ADQCh. 17.A - Prob. 4ADQCh. 17.A - Prob. 1ARQCh. 17.A - Prob. 2ARQ
Ch. 17.A - Prob. 3ARQCh. 17.A - Prob. 4ARQCh. 17.A - Prob. 1APCh. 17.A - Prob. 2APCh. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5P
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- A firms demand curve for labor coincides with the: marginal cost curve average cost curve marginal revenue curve marginal revenue product curvearrow_forwardFor a corripetitive firm workers marginal revenue product equals the marginal product of labor times the: wage rate. wage rate. price of the firm's product  interest rate  firm's total revenuearrow_forwarda)The technical rate of substitution between factors X2 and X1 is 4. If you desire to produce the same amount of output but cut your use of X1 by 3 Units, how many more units of X2 unit will you need. b) Why will a monoponist undeemploy and underpay its workers compared to a perfectly competitive firm. c) Explain what happens to the marginal Factor cost of hiring a worker faced by the Monoponist when the elasticity of the supply Curve is infinitely large.arrow_forward
- The supply of labor is determined by the:  marginal product of labor.  opportunity cost of hiring labor.  number of workers.  All of these are true.arrow_forwardRefer to the table below. Diminishing marginal productivity begins when the:   A). third worker is hired.    B). fourth worker is hired.    C). fifth worker is hired.    D). sixth worker is hired.arrow_forwardDescribe the construction of the firm’s demand curve for labour in the short run. Describe the relationship between the firm's demand curve for labour in the short-run and the market demand curve for labour in the short-run. In particular, is one curve likely to be more or less elastic than the other?   Can you please specify why the curve is more elastic than the other.  And include diagramarrow_forward
- QUESTION 15 Answer this question based on the information in the table:If hiring the 6th worker increases total product by 7 units and the price of each unit is $2, which of the following is true? Number of Workers Total Cost 0 50 1 110 2 160 3 200 4 240 5 250 6 260 7 280 8 310 9 350 10 400 Â Â The firm should not hire the 6th worker as MR<MC. Â Â Marginal revenue equals $2. Â Â The firm should hire the 6th worker as MR>MC. Â Â The firm should not hire the 6th worker as MR<TC.arrow_forwardGoleta Brewing Company hires only two types of labor, managers and brewing assistants (denoted M and B, respectively). GBC has the following Cobb-Douglas production function F(M,B) = M.5 B.5 and wants to produce 10 barrels of pale ale this week. If the wage of managers is $50 per hour and the wage of brewing assistants is $10 per hour, how many managers and brewing assistants should the firm hire (round to nearest whole number)? How does your answer change when the wage of managers decreases to $30 per hour and the wage of brewing assistants remains constant. Is this result consistent with your intuition?arrow_forwardThe marginal product of an input is defined to be: Â A. the additional output that can be produced by increasing all inputs by one unit B. the total output produced divided by the number of units of the input C. the additional output that can be produced by increasing the input by one unit, holding all other inputs constant D. the additional revenue that is generated by increasing the input by one unit Clear my choicearrow_forward
- One of these four answers could cause the demand curve for labor to shift to the right. Which one? Group of answer choices a decrease in the firm's product price an increase in demand for the firm's product a decrease in labor productivity an increase in the wage ratearrow_forwardSuppose the following table gives the quantity of labor, offered wage, and marginal revenue product of labor for Company X. Labor (hours) Wage ($/hour) MRP 16 12 - 17 18 170 18 24 154 19 30 138 20 36 122 Â What can the firm do to increase profits?arrow_forwardIf labor supply of unskilled workers is perfectly elastic, then a) the labor supply curve of unskilled workers is horizontal at the market-clearing wage. b) the labor supply curve of unskilled workers is vertical at the total number of unskilled workers in the market. c) firms face an increasing marginal cost of hiring unskilled labor. d) workers will supply more hours of labor to the market when wages increase. c) firms face a horizontal value of marginal product of employment curve.arrow_forward
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