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Question 1 optio… Show more Question 1 A monopolist will h

Question 1 optio… Show more Question 1 A monopolist will hire an additional unit of labor as long as Question 1 options: the marginal revenue product is less than the marginal factor cost. the marginal revenue curve is above the demand curve. the additional cost of the worker is outweighed by the additional revenues made from selling the output of theses workers. the marginal revenue product is larger than the marginal factor cost. Question 2 If a firm hires 312 workers it will produce 4,522 units of output. If it hires 313 workers it will produce 4,786 units of output. The marginal physical product of labor equals Question 2 options: 4,786 264 313 1 Question 3 Refer to the above figure. The firm is operating using MRP0. An increase in productivity has occurred. The relevant curve for the firm after the increase in productivity Question 3 options: is MRP0. is MRP1. is MRP2. could be MRP1 or MRP2 depending upon whether the firm was earning a positive profit. Question 4 The demand curve for labor will shift whenever Question 4 options: the wage rate changes. the marginal factor cost changes. demand for the final product changes. the supply of labor changes. Question 5 The elasticity of demand for labor will be less the Question 5 options: easier it is to substitute one input for another. longer the time period. less the demand elasticity for the final product. larger the share of total costs accounted for by labor. Question 6 Refer to the above figure. MRP0 represents Question 6 options: the demand curve for the product. the supply curve for labor. the supply curve for the product. the demand curve for labor. • Show less

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