Assign3 - University of California, Irvine Department of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
University of California, Irvine Department of Economics Intermediate Economics II: Econ 100B Summer 2008 Prof. Safarzadeh Student ID: _________________ Assignment # 3 Student Name :_______________ I. Choose the best answer to the following question and write it in the left margin of the question. Please use Scranton for multiple choice questions. 1. A perfectly competitive firm in a perfectly competitive factor market is selling its product at a price of $5. The marginal product of the last unit of labor hired by the firm is 9 units. If the wage paid to labor is $42. a. The firm should hire more labor. b. The firm should layoff some labor. c. The firm’s labor input is optimum. d. The firm is maximizing profit. 2. From optimizing principles of the firm, a firm will hire one more labor if a. MRPL < w. b. MRPL = w. c. MRPL > w. d. MPPL = w. e. MPPL = P. 3. Which of the following is true for a perfectly competitive firm operating in a perfectly competitive factor market. a. MRPL = (MPL)(MR) b. MRPL = P. MPL. c. MRPL = w. MPL. d. e. 4. MRPL curve is a decreasing function because a. Wages increase as labor input increases. b. Price decreases as output increases. c. Demand decreases as price increases. d. MPL falls as hours of work increases. 5. A perfectly competitive firm operating in a perfectly competitive labor market faces a. a perfectly elastic supply of labor (SL). b. a perfectly inelastic supply of labor (SL). c. a downward sloping supply of labor (SL). d. an upward sloping supply of labor (SL). 6. In a competitive labor market, the industry faces a. a perfectly elastic supply of labor (SL). b. a perfectly inelastic supply of labor (SL). c. a downward sloping supply of labor (SL). d. an upward sloping supply of labor (SL). 7. In a monopoly labor market, a firm faces a. a perfectly elastic supply of labor (SL). b. a perfectly inelastic supply of labor (SL).
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
c. a downward sloping supply of labor (SL). d. an upward sloping supply of labor (SL). 8. In a monopoly labor market, firms face a. a perfectly elastic demand for labor. b. a perfectly inelastic demand for labor. c. a downward sloping demand for labor. d. an upward sloping demand for labor. 9. In a monopsony labor market, firms face a. a perfectly elastic demand for labor. b. a perfectly inelastic demand for labor. c. a downward sloping demand for labor. d. an upward sloping demand for labor. 10. In a monopsony labor market, firms face a. a perfectly elastic supply of labor (SL). b.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Assign3 - University of California, Irvine Department of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online