Question

Question 3

A union can influence the demand for labor by:

requiring union fees.

raising union fees.

effective advertising that convinces customers to buy the "union label."

all of these.

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Question 4

The supply curve that monopsonists face is different from the supply curves that firms in competitive labor markets face because with a monopsony,

d and e.

the supply curve of labor is relatively flat.

offering a wage lower than the market wage means having no workers.

the employer faces the market supply curve.

the firm does not take the wage as given.

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Question 8

Marginal revenue product of labor measures the extra revenue generated to the firm from the employment of an additional worker.

True

False

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Question 11

Suppose there are 100 identical firms producing package delivery services. One of the firms finds that when it has to pay a wage rate of $7, it hires 20 delivery people. The firm charges an average price of $10 to deliver a package. From this information, we know that the package delivery industry is hiring a total of:

100 workers.

200 workers.

700 workers.

2,000 workers.

10,000 workers.

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Answer 1

Q3) option c)

No effect on demand for Labor by requiring or raising union fee.

By advertising, product price rise, hence MRPL rise,

Since MRPL = MR*P

So as MRPL is Labor demand curve, so it is affected.

Q4) option a )

Both d & e are right

For monopsonist, Labor supply curve is market supply curve, since only one firm is hiring Labor.

In Competitive market,wage rate is given & every firm has to hire Labor at that wage only .since a single hiring firm in monopsony, which has all market power in terms of hiring Labor.

So monopsonist sets the wage rate .

Option b & c are false.

Since supply curve is less flat & upwards sloping for monopsonist

Q8) True

MRPL = MR*MPL

Q11) option d).

One firm is hiring 20 people, so total 100 firms will hire 2000 workers