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ECS1501-25-Y Topics 12 -15

ECS1501-25-Y Topics 12 -15

Looking for ECS1501-25-Y Topics 12 -15 test answers and solutions? Browse our comprehensive collection of verified answers for ECS1501-25-Y Topics 12 -15 at mymodules.dtls.unisa.ac.za.

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Which condition must be met for a firm to hire an additional worker?

Wage = Average Product

Total revenue > total cost

❌

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If a minimum wage is set below the equilibrium wage on the graph, what will be the market outcome?

Labour shortage

❌

Downward movement along the supply curve

❌

Unemployment

❌

No effect on the wage or quantity of labour employed

✅

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What happens to the demand for labour if the product’s price increases?

It shifts to the right

It remains unchanged

It decreases

It shifts to the left

❌

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On a labour market graph, if the minimum wage is imposed above the equilibrium, which of the following best describes the labour surplus?

Vertical distance between demand and supply curves

Distance from origin to equilibrium

The wage rate set by the government

Horizontal gap between Ns (labour supplied) and Nd (labour demanded) at the minimum wage

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What is the shape of the marginal product curve in the short run?

Downward sloping only

First rising then falling

U-shaped

Upward sloping only

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Introducing a minimum wage below the equilibrium wage in a perfectly competitive labour market will result in an excess demand for labour.

A firm will employ workers as long as MPP is greater than the wage rate (w).

Use the diagram below which diagram shows the short-run conditions of a firm in a perfectly competitive market to answer the question.

In the long run, ____ firms will ____ the industry so that the market supply curve shifts to the _____, until prices ______ sufficiently so that all firms make a normal profit only.

new firms; enter; right; decrease.

✅

existing firms; exit; left; increase.

❌

new firms; enter; left; increase.

❌

existing firms; exit; right; decrease.

❌

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This question is based on the following diagram which shows the marginal cost and average total cost curves for a perfectly competitive firm.