The decision on how much labour will a firm employ at the given wage rate requires A. None of the above B. Marginal benefits to exceed marginal costs C. Price of substitute for labour D. Changes in the number of firms.Reset Selection

Multiple Choice QuestionWhen a firm in a competitive labor market is a wage taker, for each additional unit of labor hired, the total resource cost Blank______.Multiple choice question.decreases by exactly the amount of the constant market wage ratecan no longer be related to the market wage rateincreases by exactly the amount of the constant market wage ratestays constant at the market wage rate

Multiple Choice QuestionWhen the relative cost of labor rises, a decision must be made whether to substitute and decrease the use of labor and increase the use of another resource input such as machines in order to produce the same amount of output at a lower cost. This statement describes the Blank______ effect.Multiple choice question.netresourcesubstitutionoutput

Multiple Choice QuestionThe MRP=MRC rule tells us that in pure competition a firm will hire workers Blank______.Multiple choice question.beyond the point at which the market wage rate (its MRC) is equal to its MRPup to the point at which the market wage rate (its MRC) is equal to its MRPup to the point at which the average of all its resource costs (its MRC) is equal to its MRPup to the point at which the average of all its resource costs (its MRC) is equal to its marginal revenue

Multiple Choice QuestionDiminishing marginal returns imply that beyond a certain point Blank______.Multiple choice question.the marginal costs of a firm declineeconomies of scale occurthe marginal product of labor declinesthe output of a firm expands

Assume a labour market for fruit picking, where the wage rate is determined by the demand and supply of labour. Describe what will happen to the wage and the quantity of labour employed in the labour market with the following government policies based on union pressure. a) A restriction on the number of backpackers allowed in Australia. b) A legally required increase in the minimum wage of 10%. c) The imposition of minimum requirement for locally produced fruits to be used by Australian jam producers. d) The imposition of a sales tax on fruits imported from overseas.