Chapter 11 Flashcards
1
Q
Marginal Revenue Product
? / ? and ?*?
A
changeTR/changeL
price * marginal product
2
Q
Graph MP/L and W/L = ?
A
marginal revenue
3
Q
Reservation wage
A
Wage too low to work
4
Q
Backward bending labor supply curve
A
After a certain price, labor is reduced
5
Q
Leisure is a ? good
A
normal
6
Q
Backwards bending - After a certain point, Substitution effect ? Income effect
A
>
7
Q
Competitive labor market
A
Equilibirum wage and labor = intersect of curves
8
Q
Individual firm Curve
A
Wage taker
9
Q
Collective bargaining
A
is the process through which a union and management negotiate a labor contract.
10
Q
Monopsony
A
is a labor market in which a single firm hires labor.
11
Q
marginal factor cost (MFC)
A
changes in total wage cost per worker
