Question : 31) Using the above table, if the wage rate for : 1238912

 

31) Using the above table, if the wage rate for a worker in a baseball bat manufacturing plant is $12 an hour, and the price of a bat is $3, then the firm will hire ________ workers.

A) 1

B) 2

C) 3

D) 4

E) 5

 

32) Using the above table, suppose the price of a bat is $3. If the wage rate for a worker in a baseball bat manufacturing plant is $18 an hour, then the firm will hire ________ workers; if the wage rate falls to $12 an hour, then the firm will hire ________.

A) 1; 2

B) 2; 4

C) 3; 3

D) 5; 4

E) 3; 5

 

 

Quantity of

Labor

Total Product   

(gymnasts trained per hour) 

A

0

 

B

1

7

C

2

13

D

3

17

E

4

19

F

5

20

 

33) The table shows information for Jen’s Gymnastics. Jen hires coaches and can charge $20 per hour for gymnastics lessons. The value of marginal product for the second coach is ________ because ________.

A) 13; 2 coaches can train 13 gymnasts

B) 6; the second coach can train an extra 6 gymnasts

C) $120; the second coach’s marginal product is 6 gymnasts and lessons cost $20

D) $260; the first two coaches can earn $20 for each of the 13 gymnasts

E) $40; each coach can charge $20 per student

34) The table above shows information for Jen’s Gymnastics. Jen hires coaches and charges $20 per hour for gymnastics lessons. Using the information in the table, which of the following shows the correct demand for labor for Jen’s Gymnastics?

A)

Quantity of Labor

Value of Marginal Product

1

$140

2

$120

3

$80

4

$40

5

$20

 

B)

Quantity of Labor

Value of Marginal Product

1

7

2

6

3

4

4

2

5

1

 

C)

Quantity of Labor

Value of Marginal Product

1

7

2

13

3

17

4

19

5

20

 

D)

Quantity of Labor

Value of Marginal Product

1

$140

2

$260

3

$340

4

$380

5

$400

 

E)

Quantity of Labor

Value of Marginal Product

1

$0

2

$20

3

$40

4

$60

5

$80

35) The table shows information for Jen’s Gymnastics. Jen hires coaches and can charge $20 per hour for gymnastics lessons. Jen’s Gym pays coaches $30 per hour. The table shows that Jen’s Gym will hire ________ coaches because ________.

A) any number less than 5; the marginal product stops increasing with the fifth coach

B) 4; the gym will earn a profit because the value of marginal profit exceeds the wage rate., but hiring a fifth coach will reduce profit

C) 1; the value of marginal product is the highest

D) 5; the marginal product is at its maximum

E) 5; total product reaches its maximum

 

36) The table shows information for Jen’s Gymnastics. Jen’s hires coaches and can charge $20 per hour for gymnastics. If the demand for Jen’s Gymnastics coaching services increases and the price for coaching increases, Jen

A) will hire more coaches because the value of marginal product has increased.

B) will hire fewer coaches because the higher price will decrease the number of gymnasts trained.

C) will hire fewer coaches in order to make a higher profit.

D) will hire more coaches because there will be movement up along the demand for labor curve.

E) may hire more or fewer coaches depending on how the higher price of lessons affects the business.

 

37) When hiring labor, to maximize profit a firm hires labor

A) until the value of marginal product equals the wage rate.

B) if the workers are not unionized.

C) until the value of marginal product is less than the wage rate.

D) until the value of marginal product is greater than the wage rate.

E) until the value of marginal product equals the marginal revenue from hiring the worker.

38) A profit-maximizing firm hires labor up to the point where

A) price of the product equals the value of marginal product.

B) price of the product equals the wage rate.

C) the wage rate multiplied by the quantity of labor equals the marginal product.

D) the wage rate equals the value of marginal product.

E) marginal revenue equals the wage rate.

 

39) The rule for employing a profit-maximizing amount of labor is to continue to hire additional workers until the additional worker’s value of marginal product is

A) less than the wage rate.

B) equal to the wage rate.

C) greater than 1.

D) less than the price of the product.

E) equal to the price of the product.

 

40) Suppose the Miami Dolphins are considering adding another backup quarterback to their roster. If the salary the Dolphins would have to pay equals $1,000,000 and the value of marginal product of the new quarterback equals $1,200,000, to maximize their profit the Dolphins should

A) add the new quarterback.

B) add two new quarterbacks.

C) not add the new quarterback.

D) not add the new quarterback and, in fact, get rid of at least one other backup quarterback.

E) Not enough information is given to determine if the Dolphins should hire the quarterback.