Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
8th Edition
ISBN: 9781337607735
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 18, Problem 3CQQ
To determine
The competitive firm hiring labor.
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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
10. The following is a total cost curve. Sketch the corresponding
marginal cost curve. If the price of output is $3 and there
are no fixed costs, what is the profit-maximizing level
of output?
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
Chapter 18 Solutions
Bundle: Principles of Economics, Loose-leaf Version, 8th + LMS Integrated MindTap Economics, 2 terms (12 months) Printed Access Card
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- 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 productsarrow_forwardA 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 profitarrow_forwardIn the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The cost and output structure that the firm faces is shown in the table below. Calculate the total labor cost and the marginal resource cost, and then fill in the blanks in the labor supply table. Instructions: Enter your answers as a whole number. Marginal Resource Total Labor Units of Labor Total Product Wage Rate Cost (Labor) Cost 10 200 $7 11 214 8 12 226 9. 13 236 10 14 244 11 15 250 12arrow_forward
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