FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: The Demand for Resources

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 121

Multiple Choice

Review LaterAdd Note

Review Later

The equation MP_L / P_L = MP_C / P_C

A) designates the MR = MC level of output.
B) assumes imperfect competition in the hiring of labor and capital.
C) is a sufficient condition for the maximization of profits.
D) is a necessary, but not sufficient, condition for the maximization of profits.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 122

Multiple Choice

Review LaterAdd Note

Review Later

According to the marginal productivity theory of resource demand, the labor-demand schedule for a producer selling in a purely competitive market is

A) the same as the marginal resource cost schedule.
B) the same as the marginal productivity schedule.
C) the same as the marginal revenue product schedule.
D) independent of the value of the product being produced.

E) B) and C)
F) A) and B)

Correct Answer

verified

Show Answer

Question 123

Multiple Choice

Review LaterAdd Note

Assume that a purely competitive firm uses two resources, labor (L) and capital (C) , to produce a product. In which situation would the firm be maximizing profit? $\begin{array}{|c|c|c|c|c|}\hline & \text { MRPL } & \text { MRPC } & \text { PL } & \text { PC } \\\hline \text { A } & 20 & 40 & 60 & 80 \\\hline \mathrm{B} & 20 & 40 & 20 & 40 \\\hline \mathrm{C} & 30 & 30 & 20 & 20 \\\hline \mathrm{D} & 60 & 80 & 20 & 10 \\\hline\end{array}$

In a competitive resource market, a decrease in the demand for a productive resource, ceteris paribus, will cause all of the following except a(n)

Other things equal, the relationship between the relative importance of a given type of labor in a firm's total costs and the elasticity of demand for that labor is such that the

We say that the demand for labor is a derived demand because

Suppose capital and labor are used in fixed proportions so that each machine requires only one worker. If a decline in the price of capital occurs, then the demand for labor will

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. $\begin{array} {| c | c | c | c|} \text { Units of Labor } & \text { Total Product } & \begin{array} { c } \text { Marginal } \\\text { Product }\end{array} & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} \\\hline 0 & 0 & & \\\hline 1 & 14 & 14 & \$ 42 \\\hline 2 & & 10 & \\\hline 3 & 30 & & 90 \\\hline 4 & 35 & & \\\hline 5 & 39 & & 117 \\\hline 6 & & & 126 \\\hline 7 & 44 & 2 & 132 \\\hline\end{array}$ What is the marginal product of the sixth worker?

An employer hiring in a competitive labor market should hire additional labor as long as

A firm's demand schedule for a resource is the firm's marginal product schedule for the resource.

Which of the following occupations is projected to be the fastest growing in the U.S. in terms of percentage increases?

A computer manufacturer's elasticity of demand for labor is not likely to be affected by the

Suppose a competitive firm in both the resource and product markets is using inputs such that the marginal product of labor is 16 and the price of labor is $4 per unit, while the marginal product of capital is 12 and the price of capital is $3 per unit. At the maximum profit equilibrium point, the price of the product is

Harry owns a barbershop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. The MRP of the second barber is

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. $\begin{array} {| c | c | c | c|} \text { Units of Labor } & \text { Total Product } & \begin{array} { c } \text { Marginal } \\\text { Product }\end{array} & \begin{array} { c } \text { Total } \\\text { Revenue }\end{array} \\\hline 0 & 0 & & \\\hline 1 & 14 & 14 & \$ 42 \\\hline 2 & & 10 & \\\hline 3 & 30 & & 90 \\\hline 4 & 35 & & \\\hline 5 & 39 & & 117 \\\hline 6 & & & 126 \\\hline 7 & 44 & 2 & 132 \\\hline\end{array}$ If the wage rate is $11 and Manfred's only fixed input is capital, the total cost of which is $30, then what will be his economic profit?

The marginal revenue product schedule is

The strength of the demand for a resource depends on the following factors, except the

Critics of the marginal productivity theory of income distribution claim that the theory is flawed because of

If the wage rate increases,

Producers should hire resources until the total output of each is equal.