5. What is the difference between the Marginal Product of Labor (MPL) and the Marginal Revenue Product of Labor (MRPL)? (A) MPL measures the change an additional worker has on profit while MRPL measures thechange and additional worker has on revenue (B) MPL is in monetary units while MRPL is in units of output (C) They are identical (D) MPL is in units of output while MRPL is in monetary units

5. What is the difference between the Marginal Product of Labor (MPL) and the Marginal Revenue Product of Labor (MRPL)? (A) MPL measures the change an additional worker has on profit while MRPL measures thechange and additional worker has on revenue (B) MPL is in monetary units while MRPL is in units of output (C) They are identical (D) MPL is in units of output while MRPL is in monetary units

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 2CQQ

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QUESTION 19 When the marginal revenue product of labor (MRPL) is greater than the wage (W) then: A. The firm should hire less labor to pay minimum wage B. The firm should use more capital to increase the labor productivit C. The firm should demand more labors in order to get maximum profit O D. The firm should use less capital and more labors to pay minimum cost
Define marginal product of labor and value of the marginal product oflabor. • Describe how a competitive, profit-maximizing firm decides how many workersto hire.
7. Use a graph and derive the labor supply curve of a worker. Explain in detail.
what is the marginal product of the third worker Table 1 Labor Production Marginal Product Total Variable Cost Total Fued Cost $0 1 $10 200 200 $20 $10 2. 350 $40 $10 3 470 $60 $10 80 $80 $10 5. 50 $100 $10 $120 $10 6. 630
12. The figure shows Edwyn’s labor supply curve. Consider a wage increase from $5 to $6. For Edwyn, does the price effect or income effect dominate his labor supply decision? Consider a wage increase from $7 to $8. For Edwyn, does the price effect or income effect dominate his labor supply decision?
8. The law of diminishing marginal product holds that as a variable input increases while other inputs are fixed, ______.a. eventually the fixed inputs will increase at a rate equal to or below the variable increasesb. labor demanded will be high at both very low and very high outputs creating a U-shaped curvec. the marginal revenue product will eventually cause the labor demand curve to turn upwardd. at some point the increase will lose its effectiveness, and additions to output will decline
Table 18-1 Days of Labor Units of Output Marginal Product VMPL 10 10 200 18 160 25 140 30 100 33 60 34 20 Refer to Table 18-1, Soppose that the firm pays its workem S00 per day. Each unit of output sells for $20 How many days of labor shouald the firm hire 04
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Number ofWorkersEmployed Output(Units) MarginalProduct(Units) Value ofMarginalProduct ($)(Market Price=1$) Value ofMarginalProduct ($)(Market Price=2$) 0 0 1 8 2 22 3 36 4 56 5 60 6 72 7 82 8 89 Derive Marginal Product and Value of Marginal Product from the following table when market price for the product is 1$ and 2$ .
9. Consider an isoquant/isocost diagram, with labour measured on the horizontal axis and capital measured on the vertical axis, which can then be used to derive a demand for labour diagram. Following a rise in the wage rate, which of the following statements would accurately describe the changes on the firm's demand curve for labour? (a) There would be a movement up the demand curve for labour and the smaller is the substitutability between the inputs, the more inelastic will be the demand curve for labour. (b) There would be a movement down the demand curve for labour and the smaller is the substitutability between the inputs, the more inelastic will be the demand curve for labour.
Illustrate and examine how the individual supply of labor curve demonstrate the way an individual divides his/her time between work and leisure