《西方经济学》习题答案—Chapter 18.docVIP

SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes 1. The marginal product of labor is the increase in the amount of output from an additional unit of labor. The value of the marginal product of labor is the marginal product of labor times the price of the good. A competitive, profit-maximizing firm decides how many workers to hire by hiring workers up to the point where the value of the marginal product of labor equals the wage. 2. A brain surgeon has a higher opportunity cost of enjoying leisure than a janitor because the surgeon’s wage is so much higher. That’s why doctors work such long hours(because leisure is so expensive for them. 3. An immigration of workers increases labor supply but has no effect on labor demand. The result is an increase in the equilibrium quantity of labor and a decline in the equilibrium wage, as shown in Figure 1. The decline in the equilibrium wage causes the quantity demanded of labor to increase. The increase in the equilibrium quantity of labor causes the marginal product of labor to decrease. Figure 1 4. The income of the owners of land and capital is determined by the value of the marginal contribution of land and capital to the production process. An increase in the quantity of capital would reduce the marginal product of capital, thus reducing the incomes of those who already own capital. However, it would increase the incomes of workers because a higher capital stock raises the marginal product of labor. Questions for Review 1. A firms production function describes the relationship between the quantity of labor used in production and the quantity of output from production. The marginal product of labor is the increase in the amount of output from an additional unit of labor. Thus the marginal product of labor depends directly on the production function. The value of the marginal product of labor is the marginal product of labor multiplied by the market price of the output. A competitive, profit-m