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echnological improvement

echnological improvement (e.g., better capital equipment) will result in a leftward shift
                            of the marginal revenue product of labor.

12.              If Sam’s manufacturing plant is in a perfectly competitive labor market where the current
                            wage is $14 per hour, his firm can expect to drive up wages if it expands its operations by
                            50%.

13.              Although the law of diminishing returns is widely accepted in economics, it also ensures
                            that the marginal revenue product must be positive.

14.              The truth of the MPP=MRP condition has been implicitly accepted by most businesses
                            while not explicitly recognizing its legitimacy.

15.              A profit-maximizing firm will employ labor up to the point where MRP = wage.

 

16.              The total physical product increases initially at an increasing rate, and then, because of
                            the law of diminishing returns, at a decreasing rate.

17.              The supply curve of labor is upward sloping because the marginal revenue produced by
                            labor is greater than one.

18.              Both an increase in employment opportunities and an increase in immigration lead to a
                            shift to the right in the supply curve for labor.

19.              Minimum wage laws are always beneficial to low-wage workers.

 

20.              Persistent wage differentials between people having different skills violate the W = MRP
                            ethic associated with the perfectly competitive market for labor.

Dec 11 2019 View more View Less

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