Labor Markets

A firm has 10 workers. They pay each worker $100/week. In any given week, the firm's "Total Cost of Labor" =

• $100 x 10 workers = $1,000

• $100 + 10 workers = $110

• $100 X 10 workers = $100,000

• Insufficient Information to answer question

In factor markets, demand is based on how useful resources are for production. Economists call this principle...

• Derived Demand

• The Law of Demand

• Marginal Factor Cost

• Marginal Revenue Product of Land

Economists use the term ________ _______ __ _____ to refer to the additional products a business produces as a result of hiring one more worker.

• Average Product of Labor

• Average Total Cost

• Marginal Revenue

• Marginal Product of Labor

Economists use the term ________ _______ to refer to the additional money a business earns through a small amount of additional production.

• Derived Demand

• Marginal Cost

• Marginal Revenue

• Average Revenue

In most markets we've examined this semester, finding the intersection of supply & demand allowed us to find the "equilibrium price." In labor markets, it allows us to find the "equilibrium _____."

• Quantity

• Maximizing Quantity

• Maximizing Price

• Wage

• Supply of Labor offered by workers

• Demand for Labor

• Supply of Jobs offered by busineses

• All of the Above

• Wages

• Price

• Quantity

• Monopsony

• Supply

• Quantity

• Wage

• Labor

• Supply

• Price

• Demand = MRPL

• Monopsony

• P*

• G

• D

• QL