Question : 11) When a firm hires 10 units of labor, 20 : 1377463

11) When a firm hires 10 units of labor, 20 pens are produced. When it hires another unit of labor, the total output increases to 23 pens. If the price of one pen is $2, the value of marginal product of the 11th unit of labor is:

A) $1.50.

B) $2.

C) $4.

D) $6.

12) If the marginal product of a worker is 10 units and each unit of the good is sold for $5, the value of marginal product of the worker is:

A) $2.

B) $5.

C) $10.

D) $50.

13) If the value of marginal product of a worker is $20 and the market price of the good he produces is $5, his marginal product is:

A) 4 units.

B) 10 units.

C) 25 units.

D) 100 units.

14) If the value of marginal product of a worker is $40 and the marginal product of the worker is 8 units, the market price of the good he produces is:

A) $2.

B) $5.

C) $8.

D) $10.

15) The decision rule for a profit-maximizing firm, operating in a competitive market, to hire an additional worker is that:

A) the value of marginal product of the worker should be equal to or greater than the wage rate.

B) the value of marginal product of the worker should be equal to or lower than the wage rate.

C) the value of average product of the worker being hired should be equal to the wage rate.

D) the value of average product of the worker being hired should be lower than the wage rate.

16) Given that the market wage rate is $50 and both the labor and the goods market are perfectly competitive, a profit-maximizing firm should hire an additional worker if:

A) the marginal product of the worker is 50 units.

B) the value of marginal product of the worker is at least $50.

C) the marginal product of the worker is less than 50 units.

D) the value of marginal product of the worker is less than $50.

17) Suppose a firm sells its product in a competitive market. If the ongoing wage rate in a competitive labor market is $30 and the market price of a firm’s product is $2, then which of the following statements is true?

A) The firm should continue to hire workers until the marginal product of the last worker hired is 2 units.

B) The firm should continue to hire workers until the marginal product of the last worker hired is 5 units.

C) The firm should continue to hire workers until the marginal product of the last worker hired is 10 units.

D) The firm should continue to hire workers until the marginal product of the last worker hired is 15 units.

18) The negative slope of the labor demand curve can be attributed to:

A) Moore’s law.

B) the law of accelerating returns.

C) the law of diminishing marginal utility.

D) the law of diminishing marginal returns.

19) If the market for labor is perfectly competitive, the wage rate for labor equals:

A) the average cost of hiring labor.

B) the value of marginal product of labor.

C) the marginal product of the last unit of labor employed.

D) the price of the product that the firm produces using the labor services.

20) The demand for labor curve is derived from the:

A) total product of labor.

B) supply curve of labor.

C) average product of labor.

D) value of marginal product of labor.