Exam 16: The Labor Market

According to the In The News article "Mauer, Twins Agree to Eight-Year, $184 Million Extension," high salaries of professional baseball player are due to

Number of stylist (per week)	total output(per week)	marginal physical product (output per stylist)	total revenue(dollars per week)	marginal revenue product (dollars per stylist)
0	0	......	$0	........
1	60	______	______	______
2	80	______	______	______
3	90	______	______	______
4	90	______	______	______

Table $30.2$ Hairstyling Appointments and Revenues Table 30.2 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists.In the spaces provided, compute the marginal physical product (MPP) of the hair stylists, total revenue, and marginal revenue product of the stylists, assuming that a hair stylist charges $60 per appointment.What is the marginal physical product of the fourth hairstylist?

The law of diminishing returns states that, ceteris paribus, the

Marginal physical product diminishes as additional workers are hired because

Number of stylist (per week)	total output(per week)	marginal physical product (output per stylist)	total revenue(dollars per week)	marginal revenue product (dollars per stylist)
0	0	......	$0	........
1	60	______	______	______
2	80	______	______	______
3	90	______	______	______
4	90	______	______	______

Table $30.4$ Hairstyling Appointments and Revenues Table 30.4 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists.In the spaces provided, compute the marginal physical product (MPP) of the hairstylists, total revenue, and the marginal revenue product of the stylists, assuming that a hairstylist charges $60 per appointment.In Table 30.4 suppose a hairstylist is paid $700 per week.How many hairstylists should a profit-maximizing salon hire?

If the cost efficiency of labor equals 2, then

If the price of the output produced by a particular type of labor decreases, which of the following shifts should occur in the labor market for the particular type of labor?

A firm should hire an additional worker as long as the wage rate is

Suppose that Silvia's Dance Studio uses both labor and capital to teach dance lessons.Given her current mix of labor and capital, the cost efficiency of labor is 1 dance lesson per dollar, and the cost efficiency of capital is 5 dance lessons per dollar.Silvia should

Because of the law of diminishing returns, as additional workers are hired, total output

A decreasing marginal utility of income contributes to the upward slope of an individual's supply curve.

If wages are relatively high, the individual labor supply curve may

Number of worker (per hour)	total output(per hour)	marginal physical product (output per worker)	total revenue(dollars per hour)	marginal revenue product (dollars per worker)
1	4	......	______	........
2	10	______	______	______
3	15	______	______	______
4	19	______	______	______
5	22	______	______	______

Table 30.3 Assume that the product price is $4 per unit and that the hourly wage for workers is $12.Neither price nor wage changes with output.In Table 30.3, how many workers should be hired?

In Figure 30.2, unemployed labor at the equilibrium wage is equal to

If the MPP of an additional unit of labor is 3 units per hour, product price is constant at $8 per unit, and the wage rate is $26 per hour, then

Higher wage rates allow a person to reduce the hours worked without losing income.This is known as the

The elasticity of labor supply measures the

If the elasticity of labor is 0.60, a 15 percent increase in the wage rate will induce a

All of the following are true at the equilibrium wage in a competitive market except

Number of stylist (per week)	total output(per week)	marginal physical product (output per stylist)	total revenue(dollars per week)	marginal revenue product (dollars per stylist)
0	0	......	$0	........
1	60	______	______	______
2	80	______	______	______
3	90	______	______	______
4	90	______	______	______

Table $30.4$ Hairstyling Appointments and Revenues Table 30.4 shows how many hairstyling appointments a hair salon can schedule per week based on the number of stylists.In the spaces provided, compute the marginal physical product (MPP) of the hairstylists, total revenue, and the marginal revenue product of the stylists, assuming that a hairstylist charges $60 per appointment.In Table 30.4, as more stylists are hired,