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Employment and Wage Rate

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Employment and Wage Rate
Questions for Homework 7

1. | The value of marginal product A. | equals marginal product. | B. | describes the costs of hiring an extra worker. | C. | equals marginal product divided by price. | D. | equals average product times the wage rate. | E. | equals marginal product times price. | | 2. | The marginal product of the 14th worker is 8 and the firm sells its output for $4 per unit. The value of the 14th worker's marginal product is A. | $2. | B. | $4. | C. | $12. | D. | $32. | E. | $56. | | Sam owns a candy factory and hires workers in a competitive labor market to case the bags of candy. His company's weekly output of cases of candy varies with the number of workers hired, as shown in the table:

Reference: Table 13-a 3. | The marginal product of the fourth worker is A. | 110. | B. | 130. | C. | 140. | D. | 145. | E. | 150. | | Sam owns a candy factory and hires workers in a competitive labor market to case the bags of candy. His company's weekly output of cases of candy varies with the number of workers hired, as shown in the table:

Reference: Table 13-a 4. | If each case sells for $5 more than the cost of the materials used in producing it, then the value marginal product for the 2nd worker is A. | $150 | B. | $310 | C. | $315 | D. | $750 | E. | $775 | | Sam owns a candy factory and hires workers in a competitive labor market to case the bags of candy. His company's weekly output of cases of candy varies with the number of workers hired, as shown in the table:

Reference: Table 13-a 5. | If each case sells for $5 more than the cost of the materials used in producing it and the competitive market wage is $650/week, how many workers should Sam hire? A. | 1 | B. | 2 | C. | 3 | D. | 4 | E. | 5 | | 6. | The optimal number of workers for a perfectly competitive firm to hire occurs when A. | total labor costs equal total revenues. | B.

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