Define the value of marginal product – Microeconomics
1. If a firm, Best Computer Buys, requires its customers to buy software from it whenever the customers purchase a computer, the company’s policy is called
a. a tying arrangement.
b. predatory pricing.
c. an exclusive deal.
d. pricing discrimination.
e. a territorial confinement.
2. _______ is an agreement between a manufacturer and a distributor on the price at which a product will be resold.
a. Resale price maintenance
b. A tying arrangement
c. Price discrimination
d. Predatory pricing
e. Price fixing
3. In an oligopoly, there are
a. few firms and barriers to entry.
b. few firms and no barriers to entry.
c. many firms and no barriers to entry.
d. barriers to entry and only one firm.
e. many firms and barriers to entry.
4. In the labor market,
a. households demand labor.
b. firms supply labor.
c. wage are determined only by firms alone.
d. firms demand labor.
e. None of the above answers is correct.
5. Which of the following methods is used by unions to increase the demand for the labor of its members?
a. Support laws that increase immigration into the country
b. Support minimum wage laws
c. Decrease demand for the good produced
d. Support free trade
e. Decrease the marginal product of union members
6. As the wage rate rises, the quantity of labor an individual supplies
a. decreases at all wage rates.
b. initially increases at low wage rates and then decreases at high wage rates.
c. initially decreases at low wage rates and then increases at high wage rates.
d. does not change.
e. increases at all wage rates.
7. The value of marginal product is equal to the
a. change in total revenue from selling one more unit of product.
b. additional revenue from selling one more unit of the product.
c. additional cost of hiring one more unit of a factor of production.
d. change in revenue from hiring one more unit of a factor of production.
e. change in total cost when one more unit of the product is produced.
8. The rule for employing a profit-maximizing amount of labor is to continue to hire additional workers until the additional worker’s value of marginal product is
a. equal to the price of the product.
b. less than the price of the product.
c. equal to the wage rate.
d. less than the wage rate.
e. greater than 1.
