Question
5. In the neoclassical model of the labor market, firms hire labor until the (. . . ) (a) marginal revenue product equals the marginal
5. In the neoclassical model of the labor market, firms hire labor until the
(. . . )
(a) marginal revenue product equals the marginal factor cost.
(b) total revenue product equals the total factor cost.
(c) marginal physical product equals the marginal revenue product.
(d) marginal physical product equals the marginal factor cost.
(e) total physical product equals the total revenue product.
6. Which one of the following jobs is most likely to have an elastic labor
supply curve?
(a) University professors
(b) Engineers
(c) Grade school teachers
(d) Sales clerks
(e) Plumbers
7. If a firm hires workers in a perfectly competitive labor market, the
marginal factor cost of labor is equal to . . .
(a) the total factor cost of labor
(b) the going wage
(c) the number of workers
(d) the marginal physical product of labor
(e) none of the above
8. Suppose that a paper mill in a small rural town is the only employer
in the area. This is an example of labor market . . .
(a) bilateral monopoly.
(b) monopoly.
(c) oligopsony.
(d) compensating wage differentials.
(e) monopsony.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started