1.A firm in a purely competitive product will hire labor up to the point where the marginal:

a.Revenue product of labor starts to decline

b.Product of labor equals the wage rate

c.Revenue product equals the marginal cost of hiring another employee

d.Revenue product of labor is greater than the wage rate

2.In a purely competitive labor market, if the supply of labor increases, the labor:

a.Demand curve for a single employer will shift to the right

b.Supply curve for a single employer will shift to the left

c.Supply curve for a single employer will shift to the right

d.Demand curve for a single employer will shift to the left

3.Consider a firm operating in a purely competitive labor market that has the following marginal revenue product schedule.

\f$250 200 Marginal factor cost 150 Price per unit of labor Marginal 100 revenue product of 50 labor 0 2 3 4 5 6 7 8 9 10 11 12 Units of labor per eveningUnits of Wage Rate Labor 6 $12 13 8 16 20