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AP Micro - Unit 5 Review

Name: ___________________________________
Horizontales
A market with one buyer, who has market power and some ability to be a wage-maker.
The labor supply curve that a firm in a perfectly competitive labor market faces
Distribution of age, immigration, leisure time, education, and available alternatives are all causes of shifts in the ______.
The demand curve for labor
The demand for labor is ______ demand, because the demand for labor depends on the demand for the product
For this factor of production the payment is called "wage".
The marginal productivity of labor per dollar will be equal to the marginal productivity of capital per dollar when a firm is _______.
Verticales
A firm could choose to use labor or _____ , or a mix of both, to produce their goods.
In a perfectly competitive labor market, firms must pay the market wage because they are ______________.
The cost of hiring one additional unit of labor
The market where households sell and firms buy
The _____ rule for the quantity of labor to hire is MRP=MFC.
A monopsonist will hire fewer workers than a perfectly competitive market, because they are NOT _____.