Exam 12: The Factors of Production

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm. -What is the term for a market structure in which there is only one buyer?

The price of a ticket for a good seat at a professional hockey game in some cities in Canada is now approaching $100.The long-run consequences of this will be that the pay earned by professional hockey players will surely fall.Discuss.

-Refer to the information above to answer this question.Which of the following statements is correct?

List five explanations for wage differentials.

Why are the very best professional squash players paid so much less than even the average professional hockey player?

All of the following statements,except one,concerning the concept of economic rent are correct.Which is the exception?

At what point will a competitive firm stop hiring additional labour?

If the MPK/PK is greater than the MPL/PL,which of the following is correct?

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market. -Refer to the above information to answer this question.In what type of market does Nearly Done Inc.sell its output?

What is meant by the factor substitution effect?

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market. -Refer to the above information to answer this question.At its optimal output,what quantity of labour will Nearly Done Inc.employ if the market wage rate is $8?

Which of the following would cause,graphically,a shift to the right in the demand curve for a factor?

The first 3 columns of the following table show data for a representative firm in an industry.The last 3 columns show the market demand and supply for the type of labour employed by this firm. -What has happened to the demand for and the supply of labour in Canada over the last forty years?

All of the following,except one,is correct regarding the demand for capital goods.Which is the exception?

Mangy Mutt Modifiers (3M)grooms dogs.3M has a fixed capital stock,and uses only one variable input,labour.Additionally,3M sells its output and buys its labour under competitive market conditions.Using the information provided,answer the questions that follow. (a)If the competitive wage rate is $15.00 per unit of labour,how many units of labour will 3M hire? (b)Calculate 3M's gross profit at that combination of wages and labour.Assume that there are zero capital costs,so gross profits equal total revenue less labour costs.Show your calculation.

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market. -Refer to the above information to answer this question.At its optimal output,what is Nearly Done's total revenue if the market wage rate is $8.

Suppose that the current price of oil is $60 a barrel and the present interest rate is 3%.Further,suppose that the interest rate remains unchanged and no new discoveries of oil are made.If the economist for the National Petroleum company believes that the rate of oil extraction is exactly right,what should be the price for a barrel of oil three years from now?

How is MRP different for a monopolist than for a perfectly competitive firm?

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market. -Which of the following statements is correct regarding the market supply of labour curve?

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market. -Refer to the above information to answer this question.What quantity of labour will Nearly Done Inc.employ and what will its total revenue be if the market wage rate is $4?