Exam 11: Factor Markets

Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the hourly rental rate of capital is $12 per hour, then the firm will hire _____ units of capital. ​

Which of the following will lead to an increase in the equilibrium quantity of workers hired and a decrease in the equilibrium wage rate?

Use Figure: Minimum Wage and Job Loss I. If the government sets a minimum wage of $14 per hour, then how many workers are currently employed? ​ Minimum Wage and Job Loss I

Use Table: Derived Demand for Capital. The table lists the units of capital and the marginal revenue product per hour that are generated by each unit for a firm in a perfectly competitive market. If the hourly rental rate of capital is $8 per hour, then the firm will hire _____ units of capital. ​

The term _____ demand is used to refer to demand for factors of production because their demand is based on the demand for the good or service that they are used to produce.