Exam 16: The Demand for Resources

If a firm pays labor $5 and receives an MP L of 10, while paying capital $100 and receiving an MP C of 100, to lower production costs it should hire more labor and less capital.

The table shows a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant. If the firm's product sells for a constant $2 and the price of the resource is a constant $16, the firm will employ how many units of the resource?

Refer to the given data. If the prices of labor and capital are $9 and $15, respectively, at the profit-maximizing level of output, the firm's total revenue will be

The demand for a resource will increase if the

Which of the following statements is most accurate about the occupations projected to be the fastest growing in the U.S. in terms of percentage increases from 2016 to 2026?

If the price of a resource is greater than its marginal revenue product, the firm should

If a 10 percent wage increase in a particular labor market results in a 5 percent decline in employment in that market, labor demand is

"Capital is, overall, a complement for human labor, not a substitute. " Evaluate this statement in terms of the effect technological innovations in capital will have on the labor market.

Refer to the given table. Which of the following best represents the labor demand schedule for this firm?

How do the factors determining resource demand differ from those in the product market?

A purely competitive firm in the factor and product markets sells its output for $1 and pays factors Pₗ = $4 and P_c = $3. What is the profit-maximizing combination of L and C for the firm?

Refer to the table, which gives data for a firm that is hiring labor in a purely competitive market. If the wage rate is $20, how many workers will the firm choose to employ?

If MP ₐ / Pₐ = MP b / Pᵦ and MRP a / Pₐ = MRP b / Pᵦ > 1, this firm is

Refer to the graph. A move from b to a along labor demand curve D ₁ would result from

Refer to the graph. Other things equal, an increase in labor productivity would cause a

A competitive firm's marginal revenue product of labor will fall as it employs more labor because the price of labor decreases as more of it is employed.

A decrease in the price of a productive resource will result in each of the following except a(n)

An example of derived demand in the auto industry is the demand for

What is the marginal productivity theory of income distribution? List the two criticisms of this theory.

If MRP of labor < wage rate, a firm should hire more workers.