Which of the following is a fundamental condition for the marginal product (MP)
ID: 1113912 • Letter: W
Question
Which of the following is a fundamental condition for the marginal product (MP) to represent labour demand?
A. All of the above
B. Competitive product market
C. Short-run period
D. Wage is the only cost of labour to the employer
E. Profit maximizing employer
If a firm pays $25 per hour and employs 50,000 labour hours per work. What is the elasticity of demand for labour if wageper hour increases tp $27 and the firms employs only 45,000 labour hours per week.
A. 3
B. -2.3
C. -1.5
The slope of the production function while holding capital fixed is
A. Marginal product of capital
B. None of the above
C. Average product of labour
D. Per unit product of labour
Changes in labour productivity that emanates from outside the firm can can also result in
a. shifts in demand curve
b. None of the above
c. constant demand curve
d. all of the above
e. Productivity values
If output were to remain constant, the effects of a fall in price of labour on the quantity of labour demanded is called...?
A. Constant
B. All of the above
C. Budget constraint
D. Income effects
E. Substitution effects
The demand for labour
a. Ostentatious
b. derived
c. None of the above
d. deprived
e. allways upward slopy
Why is the long-run labor demand curve more elastic relative to the short-run labor demand curve?
a. It is because labour remains a normal good
b. Due to low wage in perfect competitive markets
c. All of the above
d. It is easier to substitute labour in the long-run than the short-run
e. Isocost line predicts the degree of the effects
Explanation / Answer
1. The correct answer is A.
2. The correct answer is C.
3. The correct answer is B.
4. The correct answer is A.
5. The correct answer is E.
6. The correct answer is B.
7. The correct answer is D.
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