econ 212- micro-unl-fisher-exam 3-
ch.10,11,12 Exam 2026 Questions and
Answers Graded A+
Define the 3 characteristics of a purely competitive labor market - Correct answer-
1. Numerous employers compete with one another in hiring a specific type of
labor.
2. Each of many workers with identical skills supplies that type of labor.
3. Individual employers and individual workers are "wage takers" because neither
can control the market wage rate.
explain why the demand for labor is derived demand - Correct answer-Because
labor resources usually do not directly satisfy customer wants but do so indirectly
through their use in producing goods and services
Define the marginal revenue product and relate it to the productivity and price of
labor - Correct answer-because resource demand is derived from product demand,
the strength of the demand will depend on the productivity of the labor, ability to to
produce, and price
, MRP=change in total revenue/unit change in labor
Determine the marginal-revenue-product schedule or labor for a product sold in a
purely competitive market when given the data - Correct answer-change in total
revenue/unit change in labor
Define the marginal resource cost - Correct answer-The change in a firm's total
cost when it employs 1 more unit of labor.
=change in total labor costs/unit change in labor
State the rule used by a profit-maximizing firm to determine how much labor it
will employ - Correct answer-a firm should hire additional units of labor as long as
each successive unit adds more to the firm's total revenue than to the firm's total
cost
Apply the MRP=MRC rule to determine the quantity of labor a firm will hire -
Correct answer-The MRP schedule therefore constitutes the firm's demand for
labor because each point on this schedule indicates the quantity of labor units the
firm would hire at each possible wage rate
Derive the market demand for labor - Correct answer-sum horizontally the
individual labor demand curves of all firms hiring a particular kind of labor
ch.10,11,12 Exam 2026 Questions and
Answers Graded A+
Define the 3 characteristics of a purely competitive labor market - Correct answer-
1. Numerous employers compete with one another in hiring a specific type of
labor.
2. Each of many workers with identical skills supplies that type of labor.
3. Individual employers and individual workers are "wage takers" because neither
can control the market wage rate.
explain why the demand for labor is derived demand - Correct answer-Because
labor resources usually do not directly satisfy customer wants but do so indirectly
through their use in producing goods and services
Define the marginal revenue product and relate it to the productivity and price of
labor - Correct answer-because resource demand is derived from product demand,
the strength of the demand will depend on the productivity of the labor, ability to to
produce, and price
, MRP=change in total revenue/unit change in labor
Determine the marginal-revenue-product schedule or labor for a product sold in a
purely competitive market when given the data - Correct answer-change in total
revenue/unit change in labor
Define the marginal resource cost - Correct answer-The change in a firm's total
cost when it employs 1 more unit of labor.
=change in total labor costs/unit change in labor
State the rule used by a profit-maximizing firm to determine how much labor it
will employ - Correct answer-a firm should hire additional units of labor as long as
each successive unit adds more to the firm's total revenue than to the firm's total
cost
Apply the MRP=MRC rule to determine the quantity of labor a firm will hire -
Correct answer-The MRP schedule therefore constitutes the firm's demand for
labor because each point on this schedule indicates the quantity of labor units the
firm would hire at each possible wage rate
Derive the market demand for labor - Correct answer-sum horizontally the
individual labor demand curves of all firms hiring a particular kind of labor
