1. If the firm is a price taker in the input market, the resource cost of...
1. If the firm is a price taker in the input market, the resource cost of an input is which of the following?
A. It is equal to the marginal cost.
B. It equals the market price for the resource.
C. It is not equal to the market price.
D. It is not equal to the marginal physical product
2. Profit maximizing firms must do which of the following?
A. Use more than enough resources to equalize marginal revenue product and marginal resource cost
B. Use just enough resource to equalize marginal revenue product and marginal resource cost
C. Use enough resources to produce a quantity of output to equalize marginal revenue product and marginal revenue
D. Make sure that marginal cost is equal to marginal resource cost
3. When marginal resource cost equals marginal revenue product, which of the following is true?
A. It is impossible to increase resource use to increase profits.
B. It is possible to increase resource use to increase profits.
C. It is possible to change in the amount of the input to increase profits.
D. It is possible to move the marginal cost curve to the left.
4. The price elasticity of labor demand is the ratio of which of the following?
A. The percentage change in quantity demanded of labor to a given percentage change in the product price
B. The percentage change in quantity demanded of labor to a given change in the wage rate
C. A change in demand for labor to a change in wage rate
D. A change in demand for labor to a given change in product price
Homework Answers
1. B) It equals the market price for the resource.
Explanation: As the firm is a price taker, the resource cost is its market price.
2. B) Use just enough resource to equalize marginal revenue product and marginal resource cost.
Explanation: We get this from the first order condition (FOC) of profit maximization.
3. A) It is impossible to increase resource use to increase profits.
Explanation: We get this from the FOC of profit maximization.
4. C) A change in demand for labor to a change in wage rate.
Explanation: We get this from the definition of price elasticity of labor.
Add Answer to:
1. If the firm is a price taker in the input market, the
resource cost of...
1. Assume there is a decrease in the supply of a product produced in a perfectly...
1. Assume there is a decrease in the supply of a product produced in a perfectly competitive market. All else constant, in the short run this will cause the profits of firms that produce substitutes for the good in question to increase. True False 2. Because it is a machine, a personal computer should be treated as a fixed input in the typical firm's short-run production function. True False 3. For a monopolist to earn a positive economic profit, price...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to t...
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to the The level of happiness among people is as high as possible. supplied quantity supp A price increase would cause people to want to buy 1 of the good. E. The supply curve and demand curve are equivalent. The Marginal Product of Labor (MPL) is equal to...
charterll from the sale of output input is known as The change in revenue that results...
charterll from the sale of output input is known as The change in revenue that results from th by one additional unit of an input is ki a) Total physical product b) Profit c) Marginal physical product d) Marginal revenue product in the market where it sells its For a firm that is a price-taker in the market where it output, a) the menu of price-quantity combinations is given negatively-sloped demand curve for output. b) marginal is always less than...
18.)A profit-maximizing firm in a competitive market should stop employing additional units of a factor when...
18.)A profit-maximizing firm in a competitive market should stop employing additional units of a factor when a.)marginal revenue of the factor is maximized b.)price of the product is greater than the marginal cost of the factor c.)marginal cost of employing the factor is minimized d.)value of the marginal product of the factor equals the price of the factor e.)marginal product of the factor is maximized 19.)A firm in a competitive market will employ additional capital until its value of the...
4. Marginal resource cost A company operates in a perfectly competitive market, selling each unit of...
4. Marginal resource cost
A company operates in a perfectly competitive market, selling
each unit of output for a price of $20 and paying the market wage
of $330 per day for each worker it hires.
In the following table, complete the column for the value of the
marginal product of labor (VMPL) at each quantity of workers.
Labor
Output
Marginal Product of Labor
Value of the Marginal Product of Labor
(Number of workers)
(Units of output)
(Units of output)...
1. WidgetWorks operates in perfectly competitive markets. It hires an extra worker at $24 an hour...
1. WidgetWorks operates in perfectly competitive markets. It hires an extra worker at $24 an hour and each hour he produces six widgets, which will sell for $10 apiece. Is WidgetWorks at its profit-maximizing output level? A. Yes, because it is making a profit on the widgets it has just produced B. No, because the marginal revenue product is too high. C. No, it should hire more workers and increase production. D. No, it should hire fewer workers and increase...
4. Marginal resource cost A company operates in a perfectly competitive market, selling each unit of...
4. Marginal resource cost A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage of $270 per day for each worker it hires. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor (Number of workers) 0 Output Marginal Product of Labor (Units of output) (Units of output) Value of the Marginal Product of...
A firm's decision to hire a factor of production DOES NOT depend on which of the...
A firm's decision to hire a factor of production DOES NOT depend on which of the following? The price of the product produced by the factor input в ) The average product of the factor input (c) The price of the factor input The demand for the product the factor produces The marginal product of the factor input Which of the following will occur in a given labor market when the wage rate rises? The quantity demanded of labor will...
8.) Derived demand is exemplified in which of the following? a.) The salary of computer techs...
8.) Derived demand is exemplified in which of the following? a.) The salary of computer techs rise, resulting in a decrease in supply and an increase in demand. b.) The salary of computer techs fall, resulting in an increase in supply and a decrease in demand. c.) Consumers want computers, so producers raise the price of computers. d.) Consumers want faster computers, so technology firms invest in capital and labor. e.) None of the above 9.) Demand for capital a.)...
1)The marginal product of labor is equal to the A. total product divided by the total...
1)The marginal product of labor is equal to the A. total product divided by the total number of workers hired. B. increase in the total product that results from hiring one more worker. C. slope of the marginal product of labor curve. D. None of the above answers are correct. 2) The marginal product of labor is the increase in total product from a A. one dollar increase in the wage rate, while holding the price of capital constant. B....
59. Market equilibrium A market equilibrium is a quantity-price pair in which: A. The government equates the selling and buying price of The price is such that the quantity demanded is equal to the The level of happiness among people is as high as possible. supplied quantity supp A price increase would cause people to want to buy 1 of the good. E. The supply curve and demand curve are equivalent. The Marginal Product of Labor (MPL) is equal to...
charterll from the sale of output input is known as The change in revenue that results from th by one additional unit of an input is ki a) Total physical product b) Profit c) Marginal physical product d) Marginal revenue product in the market where it sells its For a firm that is a price-taker in the market where it output, a) the menu of price-quantity combinations is given negatively-sloped demand curve for output. b) marginal is always less than...
4. Marginal resource cost
A company operates in a perfectly competitive market, selling
each unit of output for a price of $20 and paying the market wage
of $330 per day for each worker it hires.
In the following table, complete the column for the value of the
marginal product of labor (VMPL) at each quantity of workers.
Labor
Output
Marginal Product of Labor
Value of the Marginal Product of Labor
(Number of workers)
(Units of output)
(Units of output)...
4. Marginal resource cost A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage of $270 per day for each worker it hires. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Labor (Number of workers) 0 Output Marginal Product of Labor (Units of output) (Units of output) Value of the Marginal Product of...
A firm's decision to hire a factor of production DOES NOT depend on which of the following? The price of the product produced by the factor input в ) The average product of the factor input (c) The price of the factor input The demand for the product the factor produces The marginal product of the factor input Which of the following will occur in a given labor market when the wage rate rises? The quantity demanded of labor will...
8.) Derived demand is exemplified in which of the following? a.) The salary of computer techs rise, resulting in a decrease in supply and an increase in demand. b.) The salary of computer techs fall, resulting in an increase in supply and a decrease in demand. c.) Consumers want computers, so producers raise the price of computers. d.) Consumers want faster computers, so technology firms invest in capital and labor. e.) None of the above 9.) Demand for capital a.)...
Most questions answered within 3 hours.
-
Modify
When executing on the command line having only
this program name, the program will accept...
asked 20 minutes ago -
Kenny Electric Company's noncallable bonds were issued several
years ago and now have 20 years to...
asked 36 minutes ago -
find H(e^Jtheta) at theta= 0, pi/10, pi/20, pi/2 for
the following:
a) H(e^Jtheta)= 1+e^Jtheta
b) H(e^Jtheta)=...
asked 1 hour ago -
Home Corporation will open a new store on January 1. Based on
experience from its other...
asked 1 hour ago -
In a neoclassical model, use the IS-LM to analyze the effect of
a permanent money supply...
asked 1 hour ago -
An electron passes through a point 2.67 cm from a long straight
wire as it moves...
asked 2 hours ago -
A grammar is a 4-tuple G, G = (Ν, Σ, Π, Σ, S) where, Ν is...
asked 3 hours ago -
In this part, calculate the present values. Use the Excel PV
function to compute the present...
asked 3 hours ago -
Part 1. Primitive Types, Sorting, Recursion for
Homework.java
a) Implement the static method initializeArray that receives...
asked 4 hours ago -
Using C++, build a sorter that can rank a sequence of numbers in
a descending order....
asked 4 hours ago -
Derive ground state term symbols. Use notation 2S(1/2) for state
2S1/2
a) d5
b) f3
c)...
asked 4 hours ago -
A sample of size 31 will be drawn from a population with mean 39
and standard...
asked 5 hours ago