Question :
41) A company finds that the value of marginal product : 1226319
41) A company finds that the value of marginal product for the current level of employment is $53 and the wage rate is $75. Which of the following is correct?
A) The firm is employing the profit-maximizing quantity of labor.
B) Too much labor is currently employed and the firm will lay off some workers.
C) Too few workers are currently employed and the firm will hire more workers.
D) The firm should shut down and produce nothing.
E) More information about the price of the product is needed to determine if the firm is hiring the profit-maximizing amount of labor.
42) The demand curve for labor is the same as the firm’s
A) marginal revenue curve.
B) marginal cost curve.
C) value of marginal product of labor curve.
D) wage rate curve.
E) supply of output curve.
43) A firm’s demand for labor curve is also
A) its value of marginal product of labor curve.
B) the demand curve for the good it produces.
C) the supply of labor curve.
D) its marginal cost curve.
E) the supply curve for the good it produces.
44) The demand curve for a factor of production is
A) the same as the factor’s supply curve.
B) upward sloping.
C) the same as the factor’s value of marginal product curve.
D) vertical.
E) None of the above answers is correct.
45) If we compare the value of marginal product of labor curve and the demand for labor curve we see that
A) they are the same thing.
B) the value of marginal product curve is twice as steep.
C) the demand for labor curve has no relationship to the value of marginal product curve.
D) the demand for labor curve is twice as steep but they share the same axes.
E) the demand for labor curve lies above the value of marginal product curve.
46) Which of the following statements about a firm’s demand for labor curve and its value of marginal product of labor curve is true?
A) The value of marginal product curve slopes upward and the demand for labor curve slopes downward.
B) The demand for labor curve shows the amount of labor firms will hire based on the wage rate while the value of marginal product curve shows the amount of output supplied based on the wage rate.
C) The value of marginal product curve is steeper than the demand for labor curve.
D) The demand for labor curve is the same as the value of marginal product curve.
E) The value of marginal product curve lies above the demand for labor curve.
47) The demand for labor curve slopes downward because
A) it takes more workers to produce more output.
B) the value of marginal product of labor diminishes as the quantity of labor employed increases.
C) at lower wages, people are not willing to work as many hours.
D) wages are fixed.
E) the supply of labor curve is upward sloping.
48) For a firm selling its product in a perfectly competitive market, the demand curve for a factor of production is downward sloping because
A) of the diminishing marginal product of the factor.
B) to sell more output, the firm must lower the price of its product.
C) firms must hire more factors of production if they want to increase their output.
D) a factor’s marginal product increases when the price of the factor increases.
E) None of the above answers is correct.
49) A firm’s demand for labor curve shifts when there is a change in
i.the supply of labor.
ii.population
iii.the equilibrium wage rate.
A) i only
B) ii only
C) i and iii
D) i and ii
E) ii and iii
50) If the marginal product of labor increases, the firm’s demand for labor curve
A) does not shift, and there is no movement along it.
B) shifts leftward.
C) shifts rightward.
D) does not shift but there is a movement along it.
E) might shift leftward or rightward depending on whether the demand for the firm’s product is elastic or inelastic.
