Answered: A firm in a competitive market should…

A firm in a competitive market should hire workers up to the point where the value of the marginal product of labor = a. the wage b. total revenue c. total cost d. total profit

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 2CQQ

See similar textbooks

Related questions

Q: The marginal product of labour tells us A. which employee is the most productive. B. the average…

A: A measure of the effectiveness of workforce performance in producing output is labour productivity.…

Q: Use the following table to answer the questions below. Number of chefs Number of pizzas produced…

A: Marginal Product of Labor (MPL): - it is the change in total production due to the employment of an…

Q: a) What is the pre-tax equilibrium price of a domestic airline ticket? b) How much more will…

A: The effect of the tax on the supply-demand equilibrium is to shift the quantity toward a point where…

Q: When hiring a new employee, a business has to pay certain expenses on this employee including wages…

A: Cost is an economic concept that refers to the resources, both monetary and non-monetary, that are…

Q: Calculate the size of the workforce needed for the companyto meet average weekly demand.

A: The workforce, often known as the labour force, is the pool of people who are employed or…

Q: marginal profit from hiring

A: Marginal profit = $1,100

Q: Using a diagram explain what happens to the long-run demand curve for labor if the price of labour…

A: Explanation:The long-run demand curve for labor depicts the relationship between the wage rate…

Q: When you have diminishing marginal returns to labor A. variable costs fall as more output is…

A: Labor is the physical, mental, and social effort used for producing goods and services in the…

Q: The local ice cream shop is trying to figure out how many workers to hire, and part of the decision…

A: Answer to the question is as follows :

Q: 10. The following is a total cost curve. Sketch the corresponding marginal cost curve. If the price…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: e) Do any of these three friends violate the property of "more is better" for junior mints? Or do…

A: Marginal utility:Marginal utility is the additional unit that is added to the total utility. It is…

Q: Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from…

A: a). MC of operating the tattoo parlor means the additional cost occurring when one more unit of…

Q: Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He…

A: Total cost =total variable cost + total fixed cost

Q: Complete the missing parts in the table Working hours (input) Wage Yield in lb. (TPP) Price of…

A: The terms used in your table are defined as follows:Working hours (input): This shows how much…

Q: Which of the following determines the firm's demand curve for labor? a.The size of the labor force…

A: At the point when the marginal revenue result of work is diagramed, it addresses the association's…

Q: a. Calculate and fill in the column of marginal products. What pattern do you see? How might you…

A: Marginal product of labor refers to the amount of additional output that obtained by increasing one…

Q: In part 2, part b, you solved the question with supply of labor. We haven't seen that issue. we know…

A: b) Derive the rule of labor hiring for a firm that operates in the short-run. Solution of this…

Q: The marginal product of an input is defined to be: A. the additional output that can be produced…

A: Answer: C The additional output that can be produced by increasing the input by one unit, holding…

Q: How does labor influence marginal product? There's the saying "the more the merrier," but is this…

A: Marginal Product of labor increases with decreasing rate. Marginal Product of Labor(MPL) is a change…

Q: If the marginal revenue earned by a firm due to an additional unit of worker is less than the…

A: Answer: A firm should not hire an additional worker if the marginal revenue received by hiring an…

Q: Marginal Revenue Product = 40 - Q/10. The cost of Labor WL = 15. The production function is Q = 25L.…

A: Given information: MRP = 40 - (Q/10) ------> Marginal revenue product Q = 25L ----------->…

Q: If the marginal product of labor increases because of a technological advancement, it will likely…

A: If the marginal product of labor increases because of a technological advancement then it will…

Q: Required: a. What is the labor rate variance for the month? b. What is the labor efficiency variance…

A: division of labour, the separation of a work process into a number of tasks, with each task…

Q: Labour is the beginning and end of production. Explain

A: Factors of production: - The inputs that are used to produce goods and services are known as the…

Q: For a profit-maximizing competitive firm, the value of marginal product curve is A. always…

A: Marginal product refers to the additional output gain from production when employing one additional…

Q: Webby Inc. is a web development company. Webby's monthly production funclioh f8 a. Fill in the…

A: Marginal product of an input is the additional quantity produced by the firm by hiring one extra…

Q: The table below shows the price of the basket of goods and services for each of the following years:…

A: Consumer price index measures the change in price paid by consumer for a specific goods basket.…

Q: Which of the following describes the law of diminishing returns to labor? A. When one more…

A: The law of diminishing returns to labour states that as more and more units of labour are hired in…

Q: The supply of labor is determined by the: marginal product of labor. opportunity cost of…

A: The problem here is to understand what factors determine the supply of labor in an economy. The…

Q: A firm's demand curve for labor in a perfectly competitive marel is portion of its curve. Select…

A: Perfect competition is an ideal type of market structure where all producers and consumers have full…

Q: a software production firm, average product has started falling and total output indicated…

A: A mathematical association between marginal product(MP) and average product(AP) expressing that the…

Q: You own a small sandwich shop with two employees. They've asked you to consider hiring additional…

A: Marginal profit is the change in profit due to an additional labor hired. Marginal product is the…

Q: A small specialty cookie company, whose only variable input is labor, finds that the average…

A: The labor demand curve is the value of the marginal product curve.Marginal revenue product is…

Q: A decrease in the wage rate will cause a firm’s marginal cost curve to shift down. True or False and…

A: The amount that is in turn being paid to workers for providing their services is known as wages.…

Q: Nimbus,Inc.,makes brooms and then sells door to door.Here is the relationship between the number of…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal…

A: Given Marginal Product of labor(MPL) = 1 ton of output. Marginal Product of capital l(MPK) = 7…

Question

A firm in a competitive market should hire workers up to the point where the value of the marginal product of labor =
a. the wage
b. total revenue
c. total cost
d. total profit

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal product of capital equals 7 tons of output and the cost of capital is $14 per unit, then A. The cost of labor must be $1/7 B. The cost of labor (wage rate) must be $2 C. The cost of labor must be $7 D. The cost of labor must be $14 as well
A firm's demand curve for labor in a perfectly competitive market is the downward-sloping portion of its curve. Select one: a. average total cost b. marginal revenue C. total revenue d. value of the marginal product of labor
If the marginal revenue earned by a firm due to an additional unit of worker is less than the marginal cost of hiring him, _____. a.the firm should not hire the worker b.the firm should hire the worker c.the firm should not operate in the long run d.the firm should not differentiate its products
Which of the following determines the firm's demand curve for labor? a.The size of the labor force b.The marginal product of labor c.The total product of labor d.The average product of labor
A small speciality cookie company, whose only variable input is labor, finds that the average worker can produce 25 cookies per day, the cost of the average worker is $128 per day, an the price of a cookie $0.50. Is the firm maximizing profit? Choose the answer. It is not maximizing profit because... a. the price of the output is not equal to the wage b. the marginal product of labor is less than the wage c. the marginal revenue product of labor is greater than the wage d. the marginal revenue product of labor is less than the wage
The marginal product of the 14 th worker is 8 and the firm sells its output for $4 per unit. If labor is the only variable cost, then the value of the 14 th worker's marginal product is $2. $4. $12. $32.
Give type answer
Which of the following describes the law of diminishing returns to labor? A. When one more worker got hired their marginal product was negative B. When one more worker got hired total product of the firm went down C. When one more worker got hired their marginal product was lower than the marginal product of the previous worker
(a) Why does the labour demand curve slope downwards? (b) A garment factory’s production function is provided in the table.The gross profit per unit (difference between selling price and material cost, but not including the cost of labour) is $100. # Workers Output 1 20 2 36 3 48 4 56 5 60 6 62 (i) If the wage rate is $1,000 a week, how many workers should the factory hire? (ii) If a surge in popularity for the factory’s brand allows them to raise the product price such that the gross profit rises to $150, how many workers will the factory hire now? (iii) Calculate the number of garments produced in each of the two cases above.
a and b
The local ice cream shop is trying to figure out how many workers to hire, and part of the decision will be based on the marginal product of labor. The following table shows a short-run production function for quantity of ice cream tubs produced. Diminishing marginal returns begins after hiring which worker? Workers hired Quantity of ice cream tubs produced 1 110 2 200 3 270 4 300 5 320 16 330 300 Seventh Sixth Second Fourth
Which of the following statements best describes the Diminishing Returns to Labor:Select one:Oa. Workers are paid less.as more of them are hired by the firm.Ob. Workers get paid less as they work more.Oc: The firm's output decreases as more workers are hired.Od. Each additional worker adds less to the production as the Marginal Product of Labor is decreasing.