review #3 - 1. In a perfectly competitive labor market, no...

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1. In a perfectly competitive labor market, no individual firm's employment decision can affect the market wage because a.union agreements prevent any firm from altering the wage rate b.each firm is ignorant of the market wage rate c.the demand for labor is a derived demand *d.each firm hires a very small portion of the labor services available e.the wage rate is regulated by the government
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Quantityof Labor Total Product 1 50 2 120 3 180 4 230 5 270 6 300
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Figure 11-3 shows the production function for a firm that sells its output in a perfectly competitive market where the market price is $20. Between the second and third units of labor, the marginal revenue product of labor equals a. $200 b. $2,000 c. $600 d. $4,000 *e. $1,200
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Suppose that the last worker hired by a perfectly competitive yo-yo manufacturer can increase the firm's production by 60 yo-yos per day. Each yo- yo sells for $5, and each worker receives $200 per day. If the government were to force the factory to increase the wage rate to $250 per day, the firm would a.have to fire the last worker b.have to fire more than one worker c. increase the number of workers hired by 25percent *d. not decrease the number of workers it employs e.be forced out of business
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This note was uploaded on 11/23/2010 for the course FINANCE 08FB40447 taught by Professor Raymond during the Spring '10 term at University of Manchester.

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review #3 - 1. In a perfectly competitive labor market, no...

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