Question

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

Definition
1. Market Labor Demand Curve
2. Market Labor Supply Curve
3. Marginal Product of Labor
4. Value of the Marginal Product of Labor
a. The additional revenue the firm receives from selling the output produced from an additional unit of labor.
b. The graphical representation of the relationship between the wage rate and the quantity of labor workers are willing to provide in a market.
c. The graphical representation of the relationship between the wage rate and the quantity of labor firms are willing to hire in a market.
d. The increase in the amount of output from an additional unit of labor.

Answer 1

The correct answers are the following:

1 - C

2 - B

3 - D

4 - A

Step-by-step explanation:

1 - C: The market labor demand curve is represented graphically by the relationship between the wage rate and the quantity of labor firms are willing to hire in a market due to the fact that the firms are the ones who are looking for workers and therefore they demand it.

2 - B: The market labor supply curve is represented graphically by the relationship between the wage rate and the quantity of labor that the workers are willing to provide due to the fact that they are the one who put their work in the market in order to be used.

3 - D: The marginal product of labor represents the increase in the amount of output from an additional unit of labor that an additional worker puts in the firm.

4 - A: The value of the marginal product of labor comprehends the additional revenue the firm receives from selling the output produced from and additional unit of labor that an additional worker put in the firm.