Micro_StudyQuestions_for_Final

The wage rate increases 20 percent and the quantity

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17. The wage rate increases 20 percent and the quantity demanded of labor falls by 60 percent. The absolute value of the elasticity of demand for labor is: a. 0.33 b. 3.00 c. 1.00 d. 2.50 e. none of the above
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18. The higher the elasticity of demand for a product: 19. If the wage rate increases from $8 to $10 and, as a result, the quantity demanded of labor decreases from 5,000 workers to 4,500 workers, then the absolute value of the elasticity of demand for labor is: 20. Marginal productivity theory implies that: EXHIBIT B Units of Wage Quantity Product Labor Rate of Output Price 0 $10.00 10 $ 5.00 1 10.20 18 4.84 2 10.40 24 4.72 3 10.60 29 4.62 4 10.80 33 4.54 5 11.00 36 4.48 6 11.20 38 4.44 7 11.40 39 4.42 21. The firm in Exhibit B is a: a. price taker in both factor and product markets. b. price taker in the factor market but a price searcher in the product market. c. price searcher in both factor and product markets. d. price searcher in the factor market but a price taker in the product market. e. none of the above. 22. The total labor cost of hiring three workers for the firm in Exhibit B is: 23. If four workers are hired by the firm in Exhibit B, total revenue is: 24. The marginal physical product of the third worker in Exhibit B is: a. 11.20 d. 5 e. 7
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25. The marginal revenue product of the fourth worker in Exhibit B is: a. $346.40 b. $149.82 c. $ 15.84 d. $ 54.00 e. $ 18.16 26. The marginal factor cost of the sixth worker in Exhibit B is: 27. If the firm in Exhibit B maximizes its profits, the number of workers hired will be: 28. A public employee union whose membership is comprised of:
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