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What does the short-run labour demand curve for a firm tell us?
What does the short-run labour demand curve for a firm tell us?
- How capital affects the firm's employment
- What happens to the firm's employment as the wage changes, holding capital constant (correct)
- How labour mobility affects the firm's employment
- How the compensating wage differential impacts the firm's employment
What does the value of marginal product represent in the context of labour demand?
What does the value of marginal product represent in the context of labour demand?
- The total cost incurred by the firm in hiring labor
- The average wage paid by the firm to its employees
- The total revenue earned by the firm from selling products
- The additional revenue generated by hiring an additional unit of labor (correct)
In the context of labour economics, what would happen to a firm's revenue when hiring a second worker if the value of marginal product curve is upward sloping?
In the context of labour economics, what would happen to a firm's revenue when hiring a second worker if the value of marginal product curve is upward sloping?
- The second worker would have a lower marginal product than the first worker
- The first worker would be laid off due to the second worker being more productive
- The second worker would contribute even more to the firm's revenue than the first worker (correct)
- The second worker would have no impact on the firm's revenue
How is the short-run labour demand curve related to changes in wages?
How is the short-run labour demand curve related to changes in wages?
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When deriving the short-run labour demand curve, what element is held constant?
When deriving the short-run labour demand curve, what element is held constant?
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What is the significance of having a downward-sloping portion in a firm's value of marginal product curve?
What is the significance of having a downward-sloping portion in a firm's value of marginal product curve?
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Why does a firm's value of marginal product curve slope upward when hiring additional workers?
Why does a firm's value of marginal product curve slope upward when hiring additional workers?
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'Compensating Wage Differential' primarily aims to:
'Compensating Wage Differential' primarily aims to:
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