Exam 14: Resource Markets

The figure given below shows the marginal revenue product (MRP) of accountants in a firm. Figure 14.2 MRP = MP ´ MR According to Figure 14.2,if the marginal cost of the resource is $600:

The following figure represents the equilibrium in the labor markets. Figure 14.4 In the figure, MFC: Marginal Factor Cost curve D: Demand or the Marginal Revenue Product curve S: Supply curve According to Figure 14.4,if the government imposes a minimum wage of W₁,what quantity of labor will a competitive labor market hire?

If an individual thinks about how he purchase goods and services,he will realize that he allocates his expenditures so that the pleasure he gets out of spending one more dollar is the same no matter what he spends that dollar on.For a firm purchasing resources,this is the same as ensuring that:

The negative slope of the demand curve of a resource indicates an inverse relationship between the price of the resource and the quantity demanded.

Why is the marginal revenue product curve of a factor negatively sloped?

Consider a perfectly competitive firm that produces computers.Each additional worker at this firm can produce four computers.Calculate the marginal factor cost if the computers are sold for $1,000 each,and the firm is maximizing profit.(Assume that marginal revenue product is the product of marginal product of the input and the marginal revenue of the firm.)

If a firm hires its fourth worker for $5 and its fifth worker for $8,then

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor. Figure 14.6 In the figure, D = MRP implies demand for labor = Marginal Revenue Product MFC represents Marginal Factor Cost curve S represents the supply curve of labor According to Figure 14.6,what is the wage paid by a monopsonist?

The demand for capital,as an input in production,will decrease if:

In a perfectly competitive labor market,a profit-maximizing firm that is also perfectly competitive in the product market will:

A general study of resource markets shows that the roles of firms and households are:

If a person is earning $80,000 per year as a dentist and could earn at most $45,000 per year doing something else,his transfer earnings are ____,whereas his economic rent is ____.

Which of the following statements is not true?

The buyers and sellers in a resource market are:

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor. Figure 14.6 In the figure, D = MRP implies demand for labor = Marginal Revenue Product MFC represents Marginal Factor Cost curve S represents the supply curve of labor According to Figure 14.6,if the government imposes a minimum wage of $15,what quantity of labor will a competitive firm and a monopsonist,respectively,hire?

The following table shows output per hour produced by the different units of labor. Table 14.1 The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue. According to Table 14.1,if the wage rate is $9 per hour,how many workers should this firm hire?

When studying the market for resources,it is important to understand that:

The figure given below represents equilibrium in the labor market. Figure 14.5 In the figure, VMP: Value of marginal product curve MRP: Marginal revenue product curve MFC: Marginal factor cost S: Supply curve of labor According to Figure 14.5,what is the equilibrium level of employment?

The figure given below represents equilibrium in the labor market with the demand and supply curves of labor. Figure 14.6 In the figure, D = MRP implies demand for labor = Marginal Revenue Product MFC represents Marginal Factor Cost curve S represents the supply curve of labor According to Figure 14.6,what is the wage and quantity of labor hired by a competitive firm?

Intel microchips are an input into a computer.What happens to the demand for the microchips if the demand for computers decline?