11) In a perfectly competitive labor market, the firm ________ the price of its product and ________ the wage it pays its workers.
A) takes from the market; takes from the market
B) can freely set; takes from the market
C) takes from the market; can freely set
D) can freely set; can freely set
12) In the short run, the marginal-revenue product curve is ________ because of ________.
A) downward sloping; diminishing returns
B) upward sloping; increasing returns
C) downward sloping; increasing returns
D) upward sloping; diminishing returns
13) If the price of output increases, the marginal revenue product curve will shift ________ and the profit maximizing quantity of labor demanded will ________.
A) up; increase
B) up; decrease
C) down; increase
D) down; decrease
14) If labor productivity increases, the marginal revenue product curve will shift ________ and the profit maximizing quantity of labor demanded will ________.
A) up; increase
B) up; decrease
C) down; increase
D) down; decrease
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Table 10.1
15) Refer to Table 10.1. The marginal product of the third unit of labor is
A) 30.
B) 50.
C) 60.
D) 160.
16) Refer to Table 10.1. The marginal product of the fourth unit of labor is
A) 40.
B) 50.
C) 52.5.
D) 210.
17) Refer to Table 10.1. The marginal product of the fifth unit of labor is
A) 8.
B) 40.
C) 50.
D) 250.
18) Refer to Table 10.1. If the price of output is $10 per unit, the marginal revenue product of the third unit of labor is
A) $50.
B) $60.
C) $500.
D) $600.
19) Refer to Table 10.1. If the price of output is $2 per unit, the marginal revenue product of the fourth unit of labor is
A) $50.
B) $52.50.
C) $100.
D) $105.
20) Refer to Table 10.1. If the price of output is $2 per unit, the marginal revenue product of the eighth unit of labor is
A) $10.
B) $20.
C) $310.
D) $620.