Exam 11: Markets for Factors of Production

The following table shows the output of chairs produced by a firm at different units of capital rented. The price per chair is $10. -Refer to the table above.If the rental price of machines is $100 per day,how many machines should the firm rent to maximize profits?

If the value of the marginal product of physical capital is $10 and the marginal product of physical capital is 5 units,the price of the finished good that the capital is used to produce is ________.

The adoption of new technologies and the use of sophisticated equipment in the provision of medical care has greatly increased the demand for highly skilled workers relative to less-skilled workers.This development is an example of ________.

The following table shows the output of chairs produced by a firm at different units of capital rented. The price per chair is $10. -Refer to the table above.If the rental price of machines is $40 per day,how many machines should the firm rent to maximize profits?

The demand for labor curve is derived from the ________.

Alejandro is a computer programmer employed by XYZ Tech Corp.He is Hispanic.He gets an offer from another company that is trying to lure him away from XYZ and is willing to pay him a higher salary than XYZ pays him.Alejandro asks his boss whether the company is willing to match the offer to keep him at XYZ.His boss says,"Don't let the door hit you on your way out." Why did the boss fail to match the other firm's offer?

Takashi,an Asian,and Sally,a Caucasian,apply for a job that requires math skills.The employer administers a math test.Sally gets a high score,while Takashi does dismally.The employer knows that Asians are,on average,better at math than Caucasians are.If the employer statistically discriminates candidates but does not discriminate based on taste,________.

When a firm hires 10 units of labor,20 pens are produced.When it hires another unit of labor,the total output increases to 23 pens.If the price of one pen is $2,the value of the marginal product of the eleventh unit of labor is ________.

If a school that offers higher wages to its staff is set up near a school that offers comparatively lower wages to its staff,what will be the effect on the wage rate and the staff strength of the school that pays lower wages?

In 1986,Roger Clemens pitched 254 innings and finished with a 24-4 record during the regular season.He struck out 238 batters,recorded an earned run average of 2.148 and a WHIP (walks plus hits per inning pitched)of 0.969.He earned $340,000,which converts to $644,998 in 2007 dollars.In 2007,Roger Clemens pitched 99 innings and finished with a record of 6-6 during the regular season.He recorded 68 strikeouts,an ERA of 4.18 and a WHIP of 1.33.He was paid $17,690,413 for the 2007 season.Which of the following is the most likely explanation for the increase in Clemens' salary from 1986 to 2007?

Which of the following statements is true?

Suppose a firm sells its product in a competitive market.If the ongoing wage rate in a competitive labor market is $30 and the market price of a firm's product is $2,then which of the following statements is true?

Why is statistical discrimination difficult to eliminate?

Scenario: Victoria Corp. makes running shoes by employing a robotics technology that requires at most a few, but highly skilled, workers for monitoring and maintenance of the robots. Each robot costs $240,000. The table below shows the marginal product of capital (MPK) per month when the firm employs one worker versus when it employs two workers. Each pair of Victoria shoes sells for $150. -Refer to the scenario above.If the firm decides to employ one worker,and the wage is $40,000 per month,the firm's maximum profit is ________.

In 2017,a Private First Class (PFC,rank of E-2)in the U.S.Army earns $21,521 in base pay per year.The median annual earnings for full-time workers aged 16-24 in the United States is $22,152.The fact that Army PFCs earn about $500 less per year than similar civilians is best explained by ________.

As the income of an individual increases,she can afford more leisure.This refers to the ________ of a wage increase.

Which of the following correctly identifies a difference between taste-based discrimination and statistical discrimination?

The following figure depicts the production of a firm. -Refer to the figure above.If the market price of the output is $4 and the firm hires 4 employees,what is the wage rate such that the fourth employee hired brings in profits that exactly equal the marginal cost to the firm?

Without any change in the demand for labor,how will shifts in the supply of labor affect equilibrium wage and employment?

If the market for labor is perfectly competitive,the wage rate for labor equals the ________.