Reference no: EM132592854

1. The increase in total revenue due to increasing the amount of labor employed by one unit is called the

a. Marginal Product.

b. Marginal Revenue Product.

c. Average Revenue Product.

d. Total Revenue Product.

2. In a perfectly competitive input market, the input's Marginal Revenue Product Curve is

a. vertical.

b. horizontal.

c. downward-sloping.

d. upward-sloping.

3.A firm uses labor and capital in its production process, and it faces competitive markets for its inputs and output. The firm's long-run labor demand curve

a. intersects with the short-run labor demand curve in several points.

b. is exactly identical to its short-run labor demand curve.

c. is steeper than its short-run labor demand curve.

d. is flatter than its short-run labor demand curve.

4.In the short run, which one of the following causes a competitive firm to hire more labor?

a. an increase in wage rate

b. an increase in the output price

c. a specific tax imposed on the firm's output

d. a decrease in the output price

5.If wages for a certain type of labor were higher in one market than in another, then

a. the differential would exist into the long run.

b. labor would move from the high wage market to the low wage market until wages were equal.

c. labor would move from the low wage market to the high wage market until wages were equal.

d. firms would not be acting as profit maximizers.