Question :
Number of workers
Marginal product
(bats per hour)
1
: 1241366
Number of workers
Marginal product
(bats per hour)
1
8
2
7
3
6
4
5
5
4
The table has the marginal products for workers at Bart’s Bats, a baseball bat factory.
29) Using the above table, if the price of a bat is $8, then the value of marginal product of labor of the fourth worker is
A) $40.
B) $0.625.
C) $1.375.
D) 5 bats.
E) None of the above answers is correct.
30) Using the above table, if the wage rate for a worker in a baseball bat manufacturing plant is $18 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) More information is needed to determine how many workers will be hired.
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.
