PCM
ECON 2302 MICROECONOMICS
Chapter 28
Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. Each number in the following list refers to the question number on Exam
4 that will test your knowledge of that specific learning objective. Each of these topics/learning objectives is discussed in the textbook in the order that they are listed below. A much better understanding can often be attained by working through MyEconLab assignments connected to any of these objectives.
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After reading this chapter, you should be able to:
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Define and calculate the Marginal Product of Labor (also know as the
Marginal Physical Product of Labor) and the Marginal Revenue Product
of Labor.
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Define and calculate the Marginal Factor Cost of Labor and state its
relatiion to the wage rate under conditions of perfect competition in
the labor market.
- State and explain the General Rule for hiring labor by a firm wanting
to maximize profits.
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Expalin what is meant by the term "Derived Demand" and explain
the relationship between the Marginal Revenue Product of Labor and the
firm's demand curve for labor.
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Explain the relationship between the price of the product labor produces
and the firm's demand for labor and explain why the total market demand
for labor is not simply the horizontal summation of each firm's demand
for labor.
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List and explain the determinants of the elasticity of demand for the
inputs into the production process.
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Explain wage determination in a perfectly competitive labor market and
what might cause shifts in the Demand and the Supply of Labor.
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Discuss the effects of outsourcing by both domestic and foreign firms.
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Explain how the demand for labor and for other inputs by a Monoplist
differs from that of a Perfectly Competitive Firm and explain what effect
this has on the utlilization of labor and other inputs.
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Explain the formula/rule for the cost minimization of all inputs used
in the production process by a firm and how this formula/rule is related
to the rule for profit maximization referred to in the thirteenth Learning
Objective above.
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