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.