Employment and Wage Rate
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 13a
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 13a
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 13a
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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