Exam 12: The Supply of and Demand for Productive Resources

A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least

When the price of steel rises, Ford uses more aluminum in the production of its cars. This is an example of

The more elastic the demand for a final product,

Assume that the demand for paper products increases. Then, we expect that the

Figure 12-2 -The demand D₁ and short-run supply SSR of accountants is indicated in Figure 12-2. Which of the following would most likely shift the demand for accountants from D₁ to D₂?

Harold Brown runs a company that sells encyclopedia sets for $250. The following schedule indicates the number of sets per week that are sold as employment increases. If Brown's costs increase by $1,300 per week as additional workers are employed, how many workers should be employed in order to maximize profit?

A decrease in the marginal product of labor would be represented by

Jim Smith runs a company that sells encyclopedia sets for $200 each. When he employs 5 workers, they can sell 20 sets per week, while only 17 sets are sold when 4 workers are employed. If the wage of workers in this skill category is $500 per week, should the fifth worker be hired?

The following schedule shows how many jars of Jaynie's Jam can be produced daily with various amounts of labor (assume that the jam is sold in a competitive price-taker market). If Jaynie must pay each worker $65 per day and she can sell her jam for $10 per jar, how many workers should she hire if she wants to maximize profits?

Figure 12-3 -Refer to Figure 12-3. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at point A. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20, then the employment level

The derived demand and, consequently, the demand curve for labor are determined by

As the price of land decreases along its demand curve, the relative price of land

Table 12-2 -Refer to Table 12-2. This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor. Each baseball sells for $5 in a competitive market. For which level of employment is the marginal product of labor greatest?

If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,

Which of the following is the most accurate definition of a worker's "marginal revenue product"?

Use the table to answer the following question. If the market wage rate is $130 per week, how many workers should be employed if the firm wants to maximize profit?

The marginal revenue product of a resource

The demand for a resource is generally more

Jim Smith runs a company that sells encyclopedia sets for $200 each. When he employs 5 workers, they can sell 20 sets per week, whereas only 17 sets are sold when 4 workers are employed. What is the weekly marginal revenue product of the fifth worker?

A convenience store is considering renting a surveillance camera from a security company that would prevent $100 in shoplifting per year. The yearly rental rate for the camera is $150. To maximize profits, the firm should