Quiz 6.docx - Question1 1/1pts , ,ithasnocontrolover...

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Question 1 1 / 1 pts When a firm is a price taker in the goods market, it has no control over market price.  When a firm is a price taker in the labor market, it has no control over    the quantity of workers it hires   Correct!    the wage paid to the workers it hires      the amount of output it produces      the price of the output it produces   When a firm is a price taker in the labor market, it cannot control the market wage.   Question 2 1 / 1 pts The additional revenue earned by the last extra worker hired is referred to as Correct!    the marginal revenue product of labor      the marginal revenue product of capital      the marginal product of labor  
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   the marginal product of capital   The marginal revenue product of labor is the additional revenue generated by the last  worker hired.   Question 3 1 / 1 pts Assume that a firm starts with 25 employees and then decides to hire more workers. In  such a case we can say that   at 25 workers the wage is equal to the marginal product of labor   at 25 workers the wage is equal to the marginal revenue product of labor Correct!   at 25 workers the wage is less than the marginal revenue product of labor   at 25 workers the wage is less than the marginal product of labor If the wage is less than the MRP of labor then the profit maximizing firm will hire more  workers.   Question 4 0 / 1 pts Consider the table above. What is the marginal profit of the 2nd worker?    $60     
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$10   You Answered    $6   Correct Answer    $30   The marginal profit is equal to the MRP of labor minus the wage.   Question 5 1 / 1 pts Consider the table above. What is the marginal revenue product of the 5th worker?    $10   Correct!    $20      $4      $6   The marginal revenue product of labor is calculated as the output price multiplied by the marginal product of labor.
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  Question 6 1 / 1 pts The marginal product of labor eventually slopes downward due to    diminishing marginal costs      diminishing average returns      diminishing marginal utility   Correct!
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