Refer to the data provided in Table 10.1 below to answer the following question(s). Table 10.1 \[\begin{array}{l} \text { Total Labor Units } \quad \text { Total Product } \quad \text { Marginal Product of Price per }\\ \begin{array} { c c c c } \text { (employees) } & \text { (T-shirts per day) } & \text { Labor (per day) } & \text { T-shirt } \\ \hline 0 & 0 & - & - \\ 1 & 20 & 20 & \$ 5 \\ 2 & 50 & 30 & 5 \\ 3 & 75 & 25 & 5 \\ 4 & 95 & 20 & 5 \\ 5 & 110 & 15 & 5 \end{array} \end{array}\] -Refer to Table 10.1. The marginal revenue product of the fifth worker is

A) $15. B) $75. C) $90. D) $550. A) $15. B) $75. C) $90. D) $550.

Refer to the data provided in Table 10.2 below to answer the following question(s). Table 10.2 \[\begin{array} { c c c } \begin{array} { c } \text { Total Labor Units } \\ \text { (employees) } \end{array} & \begin{array} { c } \text { Total Product } \\ \text { (frames per day) } \end{array} & \begin{array} { c } \text { Price per } \\ \text { Frame } \end{array} \\ \hline 0 & 0 & \$ 10 \\ 1 & 10 & \$ 10 \\ 2 & 30 & \$ 10 \\ 3 & 55 & \$ 10 \\ 4 & 70 & \$ 10 \\ 5 & 82 & \$ 10 \end{array}\] -Refer to Table 10.2. The most firms would be willing to pay per worker and hire three total workers is

A) $120. B) $150. C) $200. D) $250. A) $120. B) $150. C) $200. D) $250.

Refer to the data provided in Table 10.2 below to answer the following question(s). Table 10.2 \[\begin{array} { c c c } \begin{array} { c } \text { Total Labor Units } \\ \text { (employees) } \end{array} & \begin{array} { c } \text { Total Product } \\ \text { (frames per day) } \end{array} & \begin{array} { c } \text { Price per } \\ \text { Frame } \end{array} \\ \hline 0 & 0 & \$ 10 \\ 1 & 10 & \$ 10 \\ 2 & 30 & \$ 10 \\ 3 & 55 & \$ 10 \\ 4 & 70 & \$ 10 \\ 5 & 82 & \$ 10 \end{array}\] -Refer to Table 10.2. The firm currently employs 4 workers at the market wage of $120 per worker per day. If the firm wants to maximize its profits, it should

A) hire fewer workers B) hire more workers. C) make no adjustments as it is already employing the profit-maximizing number of workers. D) shut down since it is incurring a loss. A) hire fewer workers B) hire more workers. C) make no adjustments as it is already employing the profit-maximizing number of workers. D) shut down since it is incurring a loss.

Exam 10: Input Demand: the Labor and Land Markets

A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $6 a bushel, the wage rate is $30, the farmer employs eight workers and the marginal product of the eighth worker is 4 bushels. What would you advise this farmer to do?

(Multiple Choice)

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Question 21

Marginal revenue product

(Multiple Choice)

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Question 22

Refer to the data provided in Table 10.1 below to answer the following question(s). Table 10.1 Total Labor Units Total Product Marginal Product of Price per (employees) (T-shirts per day) Labor (per day) T-shirt 0 0 - - 1 20 20 \ 5 2 50 30 5 3 75 25 5 4 95 20 5 5 110 15 5 -Refer to Table 10.1. The marginal revenue product of the fifth worker is

(Multiple Choice)

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Question 23

A firm will use land up to the point at which the MRP of land is equal to the price of land.

(True/False)

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Question 24

The demand for land is upward sloping.

(True/False)

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Question 25

An increase in labor productivity would cause a rightward shift of the labor supply curve.

(True/False)

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Question 26

Because marginal revenue product reflects productivity, decreases in productivity directly shift

(Multiple Choice)

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Question 27

If a pet grooming salon hires an additional groomer, that worker can groom 4 additional pets per day. The average grooming fee is $25. The most the salon would be willing to pay that groomer is

(Multiple Choice)

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Question 28

Refer to the data provided in Table 10.3 below to answer the following question(s). Table 10.3 -Refer to Table 10.3. Marginal revenue product of the ________ worker is $480.

(Multiple Choice)

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Question 29

The ________ of labor in a perfectly competitive labor market is the market wage rate.

(Multiple Choice)

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Question 30

If Tie-Dyed T-Shirts is currently employing labor so that the wage is less than the marginal revenue product of labor, it must also be true that

(Multiple Choice)

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Question 31

The demand for inputs is ________ because it depends on the demand for outputs.

(Multiple Choice)

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Question 32

A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $6 a bushel, the wage rate is $30, and the farmer employs eight workers. If the farmer is maximizing his profits, then the marginal product of the eighth worker is

(Multiple Choice)

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(73)

Question 33

Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. Figure 10.2 -Refer to Figure 10.2. This firmʹs marginal cost curve has shifted from MC₁ to MC₀ A profit-maximizing firm should the amount of output produced and its demand for labor.

(Multiple Choice)

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(69)

Question 34

A firm hires labor, capital, and land to produce tomatoes. Currently the marginal product of the last unit of labor input is 20, the marginal product of the last unit of capital input is 30, and the marginal product of the last unit of land input is 100. The market wage is $10 and the market price for capital is $15. If the firm is using the optimal combination of inputs, then the price of land is

(Multiple Choice)

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Question 35

In theory, if a profit-maximizing firm in a perfectly competitive labor market found it advantageous to hire one less worker, the firm should pay a

(Multiple Choice)

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Question 36

Refer to the data provided in Table 10.2 below to answer the following question(s). Table 10.2 Total Labor Units (employees) Total Product (frames per day) Price per Frame 0 0 \ 10 1 10 \ 10 2 30 \ 10 3 55 \ 10 4 70 \ 10 5 82 \ 10 -Refer to Table 10.2. The most firms would be willing to pay per worker and hire three total workers is

(Multiple Choice)

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(72)

Question 37

The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?

(Multiple Choice)

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Question 38

Samurai Sushi produces sushi using one variable input - labor. Samurai Sushi is a consumer in the market and a producer in the market.

(Multiple Choice)

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Question 39

Refer to the data provided in Table 10.2 below to answer the following question(s). Table 10.2 Total Labor Units (employees) Total Product (frames per day) Price per Frame 0 0 \ 10 1 10 \ 10 2 30 \ 10 3 55 \ 10 4 70 \ 10 5 82 \ 10 -Refer to Table 10.2. The firm currently employs 4 workers at the market wage of $120 per worker per day. If the firm wants to maximize its profits, it should

(Multiple Choice)

4.8/5

(70)

Question 40

Marginal revenue product

A firm will use land up to the point at which the MRP of land is equal to the price of land.

The demand for land is upward sloping.

An increase in labor productivity would cause a rightward shift of the labor supply curve.

Because marginal revenue product reflects productivity, decreases in productivity directly shift

If a pet grooming salon hires an additional groomer, that worker can groom 4 additional pets per day. The average grooming fee is $25. The most the salon would be willing to pay that groomer is

Refer to the data provided in Table 10.3 below to answer the following question(s). Table 10.3 -Refer to Table 10.3. Marginal revenue product of the ________ worker is $480.

The ________ of labor in a perfectly competitive labor market is the market wage rate.

If Tie-Dyed T-Shirts is currently employing labor so that the wage is less than the marginal revenue product of labor, it must also be true that

The demand for inputs is ________ because it depends on the demand for outputs.

Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. Figure 10.2 -Refer to Figure 10.2. This firmʹs marginal cost curve has shifted from MC₁ to MC₀ A profit-maximizing firm should the amount of output produced and its demand for labor.

In theory, if a profit-maximizing firm in a perfectly competitive labor market found it advantageous to hire one less worker, the firm should pay a

The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?

Samurai Sushi produces sushi using one variable input - labor. Samurai Sushi is a consumer in the market and a producer in the market.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Exam 10: Input Demand: the Labor and Land Markets

Marginal revenue product

A firm will use land up to the point at which the MRP of land is equal to the price of land.

The demand for land is upward sloping.

An increase in labor productivity would cause a rightward shift of the labor supply curve.

Because marginal revenue product reflects productivity, decreases in productivity directly shift

If a pet grooming salon hires an additional groomer, that worker can groom 4 additional pets per day. The average grooming fee is $25. The most the salon would be willing to pay that groomer is

Refer to the data provided in Table 10.3 below to answer the following question(s). Table 10.3 -Refer to Table 10.3. Marginal revenue product of the ________ worker is $480.

The ________ of labor in a perfectly competitive labor market is the market wage rate.

If Tie-Dyed T-Shirts is currently employing labor so that the wage is less than the marginal revenue product of labor, it must also be true that

The demand for inputs is ________ because it depends on the demand for outputs.

Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. Figure 10.2 -Refer to Figure 10.2. This firmʹs marginal cost curve has shifted from MC1 to MC0 A profit-maximizing firm should ________ the amount of output produced and ________ its demand for labor.

In theory, if a profit-maximizing firm in a perfectly competitive labor market found it advantageous to hire one less worker, the firm should pay a

The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?

Samurai Sushi produces sushi using one variable input - labor. Samurai Sushi is a consumer in the ________ market and a producer in the ________ market.

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Elasticity

Household Behavior and Consumer Choice

The Production Process: the Behavior of Profit-Maximizing Firms

Short-Run Costs and Output Decisions

Long-Run Costs and Output Decisions

Input Demand: the Capital Market and the Investment Decision

General Equilibrium and the Efficiency of Perfect Competition

Monopoly and Antitrust Policy

Oligopoly

Monopolistic Competition

Externalities, Public Goods, and Common Resources

Uncertainty and Asymmetric Information

Income Distribution and Poverty

Public Finance: the Economics of Taxation

International Trade, Comparative Advantage, and Protectionism

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. Figure 10.2 -Refer to Figure 10.2. This firmʹs marginal cost curve has shifted from MC₁ to MC₀ A profit-maximizing firm should the amount of output produced and its demand for labor.

Samurai Sushi produces sushi using one variable input - labor. Samurai Sushi is a consumer in the market and a producer in the market.