1 Which of the following statements about the value of the marginal product (VMP) of labour isnot true?

Select one:

A.

VMP indicates the worth of an additional worker to the firm

B.

VMP indicates the revenue the firm earns by hiring one more worker

C.

VMP and wage rate together determine the quantity of labour demanded by a firm

D.

VMP indicates the worth of all workers to a firm.

2 Compared to a competitive labour market, a monopsony

Select one:

A.

employs fewer workers and pays lower wage.

B.

employs more workers but pays the same wage

C.

employs more workers and pays a higher wage

D.

employs more workers and pays less wage

3, Suppose that for a public good, the MSB intersects the MSC at 4 units.If the economy is currently producing 3 units, then

Select one:

A.

MSB>MSC and the resources can be used more efficiently by increasing output by 1.

B.

MSB

C.

MSB>MSC and the resources can be used more efficiently by increasing output by more than 1.

D.

MSB

4 . Marginal revenue for a monopoly is computed as

Select one:

A.

(average revenue multiplied by quantity) / price

B.

the change in total revenue divided by thechange in quantity sold

C.

total revenuedivided by quantity sold

D.

total costs divided by quantity sold

5., When production of a good result in an external cost, the unregulated competitive market equilibrium is inefficient because

Select one:

A.

MSC=MSB

B.

MSC=MC

C.

MSC>MSB

D.

MSC

6.. Suppose there is one firm in a market. If this firm sells the same good at different prices to different customers, then this practice is called

Select one:

A.

predatory pricing

B.

variable pricing

C.

price discrimination

D.

price determination