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1.6 The labour market (A-level only)

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Question 2

A profit-maximising firm hires workers in a perfectly competitive labour market but has monopoly power in its product market. The firm's short-run demand curve for labour is derived from its:

A

marginal physical product of labour multiplied by the price of the output (MPPL×PMPP_L \times PMPPL​×P)

B

average physical product of labour multiplied by the marginal revenue of the output (APPL×MRAPP_L \times MRAPPL​×MR)

C

marginal physical product of labour multiplied by the marginal revenue of the output (MPPL×MRMPP_L \times MRMPPL​×MR)

D

marginal cost of labour multiplied by the price of the output (MCL×PMCL \times PMCL×P)

Markscheme

1.6 The labour market (A-level only) Questions

  1. A Level
  2. /Economics
  3. /1.6 The labour market (A-level only)

64 exam-style questions on AQA A Level Economics 1.6 The labour market (A-level only), covering 1.6.1 The demand for labour, marginal productivity theory, 1.6.2 Influences upon the supply of labour to different markets, 1.6.3 The determination of relative wage rates and levels of employment in perfectly competitive labour markets, 1.6.4 The determination of relative wage rates and levels of employment in imperfectly competitive labour markets, 1.6.5 The Influence of trade unions in determining wages and levels of employment, 1.6.6 The National Minimum Wage, and 1.6.7 Discrimination in the labour market. Each one has a worked solution and a mark scheme showing where the marks go.

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