6. In a perfetly competitive industry, an individual firm faces: a. a perfectly
ID: 1208027 • Letter: 6
Question
6. In a perfetly competitive industry, an individual firm faces:
a. a perfectly elastic labor supply curve
b. a perfectly inelastic labor supply curve
c.a perfectly vertical labor supply curve
d.none of the above
8. A firm purchases more capital equiptment. We would expect to observe:
a. an increase in the supply of labor for this firm
b. a derease in the supply curve of labor for this firm
c.an increase in the wage rate paid for labor by this firm
d.an increase in the demand for labor by this firm
10. Which of the following would be h most likley outcome if all perfectly competitive firms in a product market join together to form a monopoly?
a. the rate of output in the market will increase but the quantity of labor input will derease
b.both the rate of output and the quantity of labor input employed will increase
c.the rate of output in the market will derease but the quantity of labor input will increase
d.both the rate of output and the quantity of labot input employed will decrease
11. what does the marginal revenue product equal when 28 workers are hired in one week?
Labor input (workers per week)__Marginal physical product (output per week)__marginal revenue
25_______________________150_________________________________9.00
26_______________________140_________________________________8.50
27_______________________130_________________________________8.00
28_______________________120_________________________________7.50
29_______________________110________________________________7.00
a. $210
b.$7.50
c.$900
d.$1040
12. A profit maximizing firm will hire additional workers until:
a. the extra revenue by the last workers hired equals zero
b.the extra cost associated with hiring the last worker equals the price of goods produced
c.the additional cost associated with hiring the last worker equals the average wage rate of workers
d.the additional cost associated with hiring the last worker equals the additional revenue generated by that worker.
Explanation / Answer
6. Option A is correct.
The individual firm faces a perfectly elastic supply curve illustrating that the firm is the price taker in the market and thw wage rate does not vary with the quantity purchased.
7. Option D is correct.
With an increase in capital equipment the demand for labour would go up because labour would be required to use the capital equipment purchased.
10. Option D is correct.
Monopoly produces an output which is less than the perfect competition level and charges a price way above its marginal cost. With the reduction is output, the labour input used would also be less.
11. Option B is correct.
Given in the table, the MR for 28th worker is 7.50.
12. Option D is correct.
This condition is referred to as hiring till MR = MC.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.