A worker's contribution to a firm's revenue is measured directly by the worker's

Group of answer choices

marginal product.

marginal revenue product.

marginal product multiplied by the worker's wage.

marginal revenue product multiplied by the output price.

For a profit-maximizing, competitive firm, the marginal revenue product of labor

Group of answer choices

increases when the price of output decreases.

is the firm's demand for labor.

equals the marginal product of labor divided by the wage rate.

All of the above are correct.

Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska. As part of her business she hires a captain and several crew members for each boat. In the market for fresh Pacific salmon, there are thousands of firms like Gertrude's. While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.

Refer to Scenario 21. If Gertrude is a price taker in the labor market, she can choose

Group of answer choices

the price at which she will sell the fish she catches.

how many crew members she will hire.

the wages that she will pay to her crew members.

All of the above.

When positive externalities are involved, the market is said to

Group of answer choices

fail, because it underproduces the good connected with the positive externality.

fail, because it overproduces the good connected with the positive externality.

succeed, because it produces the socially optimal quantity of the good connected with the positive externality.

be "in optimum," because the equilibrium fully adjusts for the positive externality.

Which of the following observations would be valid if the Gini coefficient is equal to one?

Group of answer choices

Perfect income inequality

Greater degree of income equality

Lorenz curve overlaps the line of perfect income equality

equal distribution of income