Chapter 11

Question 1

Marginal Revenue Product

? / ? and ?*?

Answer 1

changeTR/changeL

price * marginal product

Question 2

Graph MP/L and W/L = ?

Answer 2

marginal revenue

Question 3

Reservation wage

Answer 3

Wage too low to work

Question 4

Backward bending labor supply curve

Answer 4

After a certain price, labor is reduced

Question 5

Leisure is a ? good

Answer 5

normal

Question 6

Backwards bending - After a certain point, Substitution effect ? Income effect

Answer 6

>

Question 7

Competitive labor market

Answer 7

Equilibirum wage and labor = intersect of curves

Question 8

Individual firm Curve

Answer 8

Wage taker

Question 9

Collective bargaining

Answer 9

is the process through which a union and management negotiate a labor contract.

Question 10

Monopsony

Answer 10

is a labor market in which a single firm hires labor.

Question 11

marginal factor cost (MFC)

Answer 11

changes in total wage cost per worker