Chapter 18 Flashcards
1
Q
What shifts the labor demand
A
Output price, technological change, supply of other factors
2
Q
What shift labor supply curve
A
Taste, immigration, changes in alternative opportunities
3
Q
What is the value of marginal product
A
Marginal product times price
4
Q
What is diminishing marginal product
A
marginal product decreases as inputs increase
5
Q
What is the production function
A
Relationship between number of inputs and outputs
6
Q
What is a monopsony
A
Market with a single buyer
7
Q
When does wage adjust
A
To balance the supply and demand for labor
