Labour Market

Question 1

What is marginal physical product

Answer 1

MPP is the products that workers will be able to produce in a period of time for an extra worker

Question 2

What is the marginal revenue product of labour MRP

Answer 2

The amount of extra revenue a labourer will bring into the firm

Question 3

How to calculate MRP

Answer 3

MOPP X MR

Question 4

What effects the elasticity of demand

Answer 4

1- substitute
2-percentage of total cost if wages are small % of total cost demand will be inelastic
3-time

Question 5

What are the factors that effect the elasticity if supply

Answer 5

1-Skills and qualification
2-unemployment
3-time

Question 6

What causes the labour market shift in demand

Answer 6

1- derived demand
2- productivity
3-capital costs
4-migration
5-income tax and benefit
6-non pincuniary benefit
7-

Question 7

What is a monopsony

Answer 7

Is where there is one buyer like the NHS

Question 8

Where do monopsonies profit maximise for quantit

Answer 8

MC=MRP

Question 9

Where do monopsonies put the wages

Answer 9

From MC=MRP down to the supply curve