1) Briefly describe how you would get the product to buyers in that same country through an international joint venture. Consider the roles of both business and government in your response. A monopolist's demand curve for labor:
A. slopes upward because monopolists use more capital than do perfectly competitive firms.
B. slopes down because of the law of diminishing marginal returns and because the monopolist
C. must lower prices to sell additional units of the good.
D. slopes down for the same reason as the demand curve for labor of a perfectly competitive firms.
E. is horizontal even though the demand curve for labor for a competitive firm is downward sloping.
2) The U.S and Indian Markets for Computer Technical-Support Services Workers
Initially, the market wage for U.S workers providing technical support for customers of U.S . computer manufacturers is $19 per hour in the graph on the left, while the market wage for Indian workers who provide the same service is $8 per hour in the graph on the right..
Based on these disparate equilibrium wage rates:
A. U.S firms have an incentive to outsource work to India.
B. Indian firms have an incentive to outsource work to the U.S.
C. Indian workers will go on strike.
D. This type of work can't be outsourced
3)Consider a perfectly competitive firm's marginal revenue product of labor curve shown in the diagram.
Using the line drawing tool, draw a new line that shows the effect of a decrease in the demand for the product produced by this fm. Label this line 'MRP1 '.
Note: if you are not prompted for a label you have used the wrong drawing tool.
For the perfectly competitive firm, the marginal revenue product is
A. the same thing as marginal physical product.
B. marginal physical product times the wage rate.
C. the same thing as marginal factor cost.
D. marginal physical product times the product price.
4)A firm that employs labor located outside the country in which it is located engages in:
A.labor outsourcing.
B.unpatriotic behavior.
C.labor exploitation.
D.labor insourcing
5)A profit maximizing firm will lure inputs in combinations
a. that equate marginal physical products of each input.
b. such that the marginal physical product per last dollar spent on each factor of production is equalized.
c. that minimize the prices of inputs.
d. that equate marginal revenue products of each input.
e. The following table gives final product price elasticity data for four industries.
6)Other things equal, the greatest elasticity of demand for labor will be in industry
a. B
b. C
c. A
d. D
7)A perfectly competitive firm faces the marginal product schedule shown above. The price of the product is $25 and the wage rate is $320 per worker. The marginal revenue product of the 14th worker is
Question 7 options:
a. $320
b. $200
c. $25
d. $300
7)All of the following can cause the demand curve for labor to shift to the right except
a. an increase in the demand for the final product.
b. an increase in the price of the final product.
c. an increase in the supply of labor.
d. an increase in the productivity of labor.
8)The market demand curve for labor is
a. the vertical summation of the individual firms' demand curves for labor.
b. less elastic than the horizontal summation of the individual firms' demand curves because output price changes as total output changes.
c. affected by the marginal factor cost of labor.
d. the horizontal summation of the individual firms' demand curves for labor.
9)The MRP curve of the monopolist is:
a. never less elastic than the MRP curve of the perfect competitor
b. always more unit elastic than the MRP curve of the perfect competitor
c. always less elastic than the MRP curve of the perfect competitor.
d. none of the above.
10) A firm is minimizing costs of production. The wage rate is $125 per worker, and the relevant price of capital is $500 per unit. The price of the final product is $25, and the marginal product of labor at the cost-minimizing quantity of labor is 50. The marginal product of capital is
a. 5 units.
b. 5,000 units.
c. 50 units.
d. 200 units.