Question 1:

Use the data in the tables to answer the question that follows. Market Firm Price of Output Quantity Supplied of Output Quantity Demanded of Output Quantity of Labor| Total Product $5 25,000 60,000 0 0 $10 50,000 50,000 15 105 $15 75,000 40,000 30 190 $20 100,000 30,000 45 265 $25 125,000 20,000 60 325 What is the marginal revenue product of the 45th unit of labor, assuming this market is perfectly competitive in both the factor and output markets?Question 12(Multiple Choice Worth 3 points) (05.03 MC) If the wage in a perfectly competitive labor market is $20 and the marginal product of the last worker employed is 10 units, what must be the market price for the good being produced? Assume a perfectly competitive output market. O $2 O $10 O $22 O $30 O $200The graph below represents the labor supply curve of a monopsonistic firm. MFCL W5 Wage Rate ($) Labor supply W4 W3 W2 WI MRPL Q1 Q2 03 Quantity (labor) What area represents the deadweight loss in the market above? The triangle to the right of Q1, above W1, up to MRPL The triangle to the left of Q2, between Labor supply and MFCL, to their intersection point. The triangle to the right of Q1, between Labor supply and MRPL to their intersection point The triangle between the intersection of MFCL and MRPL and Q2 There is no deadweight loss in this marketIf the demand for product Y increases significantly, then O the demand for the labor used to make Y decreases O the quantity of labor supplied to produce Y will decrease O the supply of labor to produce Y will increase O only the quantity demanded of labor increases O the demand for the labor used to make Y increasesA firm in a perfectly competitive labor market is employing labor where the marginal revenue product of the last unit is $25 and the marginal factor cost is $30. Based on this, the firm should O employ more units of labor O employ fewer units of labor O employ the same amount of labor O lower its offered wage for labor O increase its offered wage for laborUse the graph to answer the question that follows. 30 Marginal Product Labor Based on the chart above, if the product sells at a price of $2 per unit, what is the marginal revenue product of the second unit of labor? O $20 O $30 O $60 O $100 O Indeterminate