WAGEW₂W₂Figure 18-5Refer to Figure 18-5. Which of the following would shift the labor supply curve from S₁ to S₂?O a. a decrease in the price of the firm's outputO b. technological progressO c. a change in workers' attitudes toward the work-leisure tradeoff in favor of workO d. an increase in the price of the firm's outputLABORS₁S₂Demand

Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…

WAGE W₂ W₂ Figure 18-5 Refer to Figure 18-5. Which of the following would shift the labor supply curve from S₁ to S₂? O a. a decrease in the price of the firm's output O b. technological progress c. a change in workers' attitudes toward the work-leisure tradeoff in favor of work O d. an increase in the price of the firm's output LABOR S. S₂ Demand

WAGE W₂ W₂ Figure 18-5 Refer to Figure 18-5. Which of the following would shift the labor supply curve from S₁ to S₂? O a. a decrease in the price of the firm's output O b. technological progress c. a change in workers' attitudes toward the work-leisure tradeoff in favor of work O d. an increase in the price of the firm's output LABOR S. S₂ Demand

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 8P

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What is die price commonly called in the labor market?
What causes the labor supply curve sometimes to bend backward at higher wages? O It can be harder to get a high wage job. O An employee may want to work less if wages are higher. O An employer may not be willing to hire as many workers at higher wages. An employee may want to work more days at higher wages. O An employer might allow fewer breaks at higher wages.
QUESTION 6 When the marginal revenue product of labor (MRPL) is greater than the wage (W) then: O A. The firm should hire less labor to pay minimum O B. The firm should use more capital to increase the labor productivit OC The firm should demand more labors in order to get maximum profit O D. The firm should use less capital and more labors to wage pay minimum cost
QUESTION 12 The backward-bending supply of labour curve is based on consideration of income and substitution effects. Which of these statements explains why the labour supply curve slopes upwards when wage rates are relatively low? O a. The income effect outweighs the substitution effect O b. The individual feels able to give up consumption in order to enjoy more leisure O c. Wage increases increase the opportunity cost of leisure O d. The income and substitution effects work in the same direction
A backward-bending labor supply curve occurs when: None of the above O a negatively sloped labor supply curve is not possible. O the substitution effect of a wage increase equals the income effect. O the substitution effect of a wage increase is greater than the income effect. O the income effect of a wage increase is greater than the substitution effect.
A firm's demand for labor will increase if the O marginal product of labor decreases. O price of the firm's output increases. O wage rate rises. O price of the firm's output decreases.
Complete the following labor supply table for a firm hiring labor competitively: Total Labor Cost Marginal Resource (Labor) Cost Marginal Revenue Product Units of Labor Wage Rate $14 14 $38 2 14 28 3 14 24 4 14 20 5 14 14 6 14 10 a. Show graphically this firm's labor supply and marginal resource (labor) cost curves. Instructions: (1) Use the tool provided 'MRC' to draw the marginal resource cost curve (plot 6 polnts total). (2) Use the tool provided 'MRP' to draw the marginal revenue product curve (plot 6 polnts total). To earn full credit for this graph, you must plot all required polnts for each curve. Тools MRC MRP 1. 3 4 5 6 7 Quantity of labor Wage rate (dollars)
Resources Submit All Question 21 of 30 <. The graph shows an individual labor supply curve. Use the graph to answer the questions. Between which two points on the graph does the income effect outweigh the substitution effect? Between points В B and C O A and C OD and E OC and E Quantity of labor Between which two points on the graph does the substitution effect outweigh the income effect? 8:2 46°F 12/1 a Wage rate
Adam operates a small shop specializing in party favors. He owns the build- ing andsupplies all of his own labor and money capital. Adam incurs no explict rental or wagecost. Before starting his own bussines Adam earned $1,000 per month by renting outthe store and earned $2,500 per month as a store manger for a lrge departmentstore chain. Because Adam use his own money capital, he also sacrificed $1,000 permonth interest earned on U.S government treasury bonds. Adam’s monthly revenuesfrom operating his shop are $10,000 and his total monthly expense for labor andsupplies amounted to $6,000. Calculate Adam’s monthly accounting and economic profits
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?
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
Figure 18b This figure below shows the labor market for automobile workers. The curve labeled S is the labor supply curve, and the curves labeled D1 and D2 are the labor demand curves. On the horizontal axis, L represents the quantity of labor in the market. 0 S D₁ What is measured along the vertical axis on the graph? O a. the wage paid to automobile workers O b. time spent by workers producing automobiles O c. the quantity of automobiles produced O d. the price of automobiles L