Exam 17: Labor and Other Resources

(Figure: Labor in a Competitive Market 0) ​ Using the information in the figure, the firm would hire:

The demand for labor is _____ in monopolistic competitive, oligopoly, and monopoly markets.

_____ is the negotiation of wages, benefits, and working conditions between an employer and a labor union.

(Figure: Supply and Demand for Labor in a Competitive Market 3) Describe supply and demand in a competitive labor market. In the figure, the firm will hire workers up to which point? Which workers would not be profitable to hire and why?

_____ is the additional revenue from an additional unit of labor, holding the amount of physical capital and other inputs fixed.

_____ is the monetary payment for labor, which excludes the cost and value of benefits.

_____ demand is demand for a resource that depends on the demand for the final product.

Lorenzo accepts his employer's offer of the opportunity to work overtime at a substantial increase in wages. This is an example of the _____ effect on the labor supply.

A higher _____ will increase the opportunity cost of leisure.

Wei sells sandwiches for $10 each in a competitive product market. The marginal physical product for the third worker is eight. The marginal revenue product of the third worker is:

In a competitive labor market, generally a firm can hire as many workers as needed:

Does the use of more capital and new technology increase or decrease the use of labor? Explain your answer.

Jake, owner of a steel plant in a rural area, employs over 90% of the workers in the area. This is an example of:

_____ when the mix of capital and labor produces output at the lowest cost.

When the marginal product per dollar spent on every input is the same, costs are:

Today, most unionized workers have _____ jobs.

The marginal revenue product for labor (MRP_L) is the _____ for labor.

The _____ states that the costs of producing a given level of output are minimized when the marginal physical product per dollar that is spent on every input is equalized.

Labor union workers have _____ average earnings than nonunion workers, which results in a _____ quantity demanded of union labor.

Discuss unions from the perspective of the workers, employers, and society.