Question

Complete the following table by selecting the term that matches each definition on the left.

Definition Market Labor Market Labor Marginal Product Value of the Marginal
Demand Curve supply Curve of Labor Product of Labor
The additional revenue the firm receives from selling the output produced from an additional unit of labor
The graphical representation of the relationship between the wage rate and the quantity of labor workers are willing to provide in a market
The graphical representation of the relationship between the wage rate and the quantity of labor firms are willing to hire in a market
The increase in the amount of output from an additional unit of labor
Which of the following events may decrease the value of the marginal product of labor?
a. A decrease in the output price
b. An increase in the marginal product of labor
c. A decrease in the wage rate
d. Bad weather that causes a decrease in supply and a rise in price for one of the inputs used to make the good

Answer 1

Value of the Marginal product of labour

Market Labor Supply Curve

Market Labor Demand Curve

Marginal Product of Labor

a

Step-by-step explanation:

Value of the Marginal product of labour is the increase in revenue received from selling a product as a result of increasing the labour demanded for by 1 unit

for example, revenue is $100 when there are 50 workers and$300 when there are 60 workers. Value of the marginal product of labour is

($300 - $100) / (60 - 50) = $20

If price of the output reduces, marginal product of labour decreases

The market labour supply curve is a graph that shows the relationship between wages and the supply of labour. there is a positive relationship between wages and the supply of labour. the curve is positively sloped

The market labour demand curve is a graph that shows the relationship between wages and the demand of labour. there is a negative relationship between wages and the demand of labour. the curve is negatively sloped

the marginal product of labour is the increase in output as a result of increasing labour by 1 unit