AP Microeconomics Unit 5

Front

What is the rule to profit maximize when hiring workers?

Back

MRP = MRC

Front

What is the shape of the Supply curve for workers in a p.C. Firm?

Back

perfectly horizontal

Front

What is MRC?

Back

Marginal Resource Cost

Front

Factor Markets designate

Back

input

Front

The two types of factor markets are

Back

Perfect Competition & Monopsony

Front

A monopsony pays _____ & hires ____ than a P.C. Firm

Back

less & less

Front

In a perfectly competitive labor market, an increase in an effective minimum wage will result in:

Back

fewer workers being hired

Front

To maximize profits, how many workers should the auto parts manufacturer hire if the market wage rate is $600 per week per worker and the price per part is $10?

Back

5 workers

Front

Assume that firms sell their output in a perfectly competitive product market and hire labor in a perfectly competitive labor market. If all other factors remain constant, an increase in the demand for the firms’ product will result in which of the following changes in the labor market?

Back

The demand curve for labor will shift to the right.

Front

If a large number of unskilled workers enter the labor market, which of the following is most likely to occur in the labor market for unskilled workers?

Back

The supply curve will shift to the right and the wage rate will decrease.