1.(revenue, cost) generated to the 2.(dividing, multiplying) the price 3.(increa

Question

1.(revenue, cost) generated to the

2.(dividing, multiplying) the price

3.(increases, decreases) as additional workers

4.(increases, decreases) as a additional workers

5.curve slopes (upward, downward).

6.(an increase, a decrease) in the number

7.(a decrease, an increase) in the price of the product

8.(a decrease, an increase) in the productivity

9.(an increase, a decrease) in the cost of workers’

10.(a decrease, an increase) in the price of labor

11.(an increase, a decrease) in he productivity of

12.(an increase, a decrease) in the number of

13.(rise, fall)

14.(a decrease, an increase) in the population of workers

15.(rightward, leftward) shift of the demand curve

16.(an increase, a decrease) in the equilibrium

17.(an increase, a decrease) in the equilibrium quantity

18.(leftward, rightward) shift of the supply curve

19.(a decrease, an increase) in the equilibrium wage

20.(a decrease, an increase) in the equilibrium quantity

Consider the following dialogue between Kyoko, an Economics student, and Jacques, a teaching assistant in her class. KYOKO: Hi Jacques, I would like to ask you a few questions about the market for labor. How is the demand for labor derived from the demand for the product labor produces? JACQUES: The demand for labor is a "derived demand" because the demand for labor is derived from the demand for the product labor produces. For example, suppose the demand for automobiles increases. The equilibrium quantity of automobiles produced will increase. Therefore, the demand for auto workers will increase. It simply takes more workers to produce more automobiles. A decrease in the demand for automobiles will decrease the demand for auto workers KYOKO: Thanks, Jake! Why is a firm's marginal revenue product of labor (MRP) curve its demand curve for labor? JACQUES: Let's see if I can help you find an answer to your own question. Let's begin with a review of what you know about marginal revenue product of abor (MRP1). What is the marginal revenue product of labor (MRP)? How is it calculated? KYOKO: The marginal revenue product of labor (MRPL) is the additional labor. MRP, is calculated by marginal product of labor (MP) Therefore, the MRP, curve slopes generated to the firm from the employment of an additional unit of the price of the product produced by the marginal product of the additional worker (MFP. Because the as additional workers are employed. as additional workers are employed, the MRP

Explanation / Answer

1.revenue, generated to the (the r in MRPL stands for revenue)

2. multiplying the price ( MRPL = MR * MPL)

3. decreases as additional workers

4. decreases as a additional workers

5.curve slopes downward

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