Exam 24: Resource Markets

The following figure shows the marginal revenue product of a resource [MRP]: Figure 14.1 In Figure 14.1, if the price of the resource is equal to 0C and the resource market is perfectly competitive, the quantity employed of the resource would be:

If the elasticity of supply of a resource is greater than zero but less than infinity, its income will comprise of:

The market-supply-of-resource curve slopes upward, indicating that as the price of a resource rises, the quantity supplied of the resource rises, everything else held constant.

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

For a perfectly competitive firm, the marginal-revenue product is equal to the marginal product multiplied by the output price.

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?

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. Refer to Table 14.1.If both the wage rate and the price of the good falls to $2, how many workers would the firm hire?

A firm that was initially a monopsonist but has to buy from a competitive resource market all of a sudden will:

A firm under any market structure maximizes profits at a point where:

Why is the value of marginal product equal to the marginal revenue product under perfect competition in the product market?

If government-assured medical and other benefits increase the labor costs, everything else remaining constant, then firms will tend to hire more of the other resources instead of labor.

The figure given below represents the marginal revenue product (MRP)and the marginal factor cost (MFC)of a resource in the resource market. Figure 14.3 Consider the resource market shown in Figure 14.3.Given that the resource market is perfectly competitive, determine the equilibrium price of the resource.

The marginal-factor cost (MFC)is the:

A firm is said to be a monopsonist if it is the sole seller of a commodity in the market.

If the price of a product increases, the demand for the resource used in producing that product decreases.

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?

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 Refer to Figure 14.4.If the government imposes a minimum wage of W₂, how many units of labor will a monopsonist hire?

Which of the following statements is not true?

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. The structure of the product market as described by Table 14.1 is:

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?