Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 2CQQ
To determine
Determining factor of labor demand curve in a profit maximizing firm.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Which of the following determines the firm's demand curve for labor?
a.The size of the labor force
b.The marginal product of labor
c.The total product of labor
d.The average product of labor
38) In the short run, the marginal product of labor might increase initially as more workers are hired because
A) the first workers hired get to use the best equipment.
B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task.
c the best workers are hired first and later hires are not as skillful.
Dj beyond some point, a firm has hired too many workers.
Barb's Bakery employs three workers who
produce 6 cakes per hour. After Barb
hires a fourth worker, production
increases to 12 cake per hour. Which of
the following statements is TRUE?
a.
b.
C.
d.
Because the marginal product
of the fourth worker is greater
than the average product of
three workers, the average
product must rise.
Because the marginal product
of the fourth worker is less
than the average product of
three workers, the average
product must fall
Because the marginal product
of the fourth worker is less
than the average product of
three workers, the average
product must rise.
Because the marginal product
of the fourth worker is greater
than the average product of
three workers, the average
product must fall.
Chapter 18 Solutions
Principles of Microeconomics (MindTap Course List)
Knowledge Booster
Similar questions
- Firms will hire additional workers as long as the wage: a) is less than the marginal product of labor. b) equals the marginal product of labor. c) is greater than the marginal product of labor. d) is less than the value of the marginal product of labor.arrow_forwardEconomics Q)how changes in productivity influence the demand for labor. please explain correctltarrow_forwardSuppose a firm finds itself in a situation where the marginal product of the last employee hired is 4 units per hour, and the marginal product of the last machinepurchased is 10 units per hour. If the wage is $20/hour and the hourly rental rate of a machine is $50, what should this firm do if it wants to be as productive aspossible?a. Lay off workers and use more machines.b. Hire workers and use less machines.c. Lay off workers and use less machines,d. Hire workers and use more machines.e. Nothing. This firm is already operating efficiently.arrow_forward
- Question 20. SG store sells its products at a price of $60,000 per unit. it is assumed that labor is the only input that changes. it is known that the marginal product of the 11th worker is 16 units, MU store pays its workers $150,000 per day. What is the value of the marginal product of labor for the 11th worker? a. $2,400,000. b. $480,000. c $1,200,000. d. $960,000.arrow_forwardLabour is the beginning and end of production. Explainarrow_forwardIn the short run, the owner of a firm should continue to hire additional units of labor until: a. the price of the product is equal to the wage rate divided by the marginal product of labor. b. the wage rate is equal to the price of the product multiplied by the marginal product of labor. c. the marginal product of labor is equal to the wage rate divided by the product price. d. Both a and c are correct. e. All of the above are correct.arrow_forward
- demand curve for labor is determined bya. the opportunity oost of wO<kers' time. b. the value of the marginal product of labor.c. offsetting income and substi tution effects.d. the value of the marginal product of capital.arrow_forwardYou own a landscaping company. You currently have 3 employees and are considering hiring a fourth. Hiring a fourth employee will increase the number of lawns your company can mow from 18 to 20. What is the marginal product of labor of the fourth employee? A) $5 B) 20 lawns C) 2 lawns D) 5 lawnsarrow_forwardA small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 100 cookies per day, the cost of the average worker is $32 per day, and the price of a cookie is $1.00. Is the firm maximizing profit? The firm A. is not maximizing profit because the marginal revenue product of labor is greater than the wage. B. is not maximizing profit because the marginal revenue product of labor is less than the wage. C. is maximizing profit because the marginal product of labor is greater than the wage. D. is not maximizing profit because the price of the output is not equal to the wage. E. is not maximizing profit because the marginal product of labor is greater than the wage.arrow_forward
- Robert can make 10 pizzas each hour. He works 8 hours each day. He is paid $100 a day. The shop can sell the pizzas for $15 each. What is Robert's value of marginal product of labor?arrow_forwardWhen a firm experiences diminishing marginal product, what is the shape of the curve that represents the value of the marginal product of labor? Select one: a. upward sloping b. downward sloping c. vertical d. U-shapedarrow_forwardA firm in a competitive market should hire workers up to the point where the value of the marginal product of labor = a. the wage b. total revenue c. total cost d. total profitarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning