Exam 10: Input Demand: the Labor and Land Markets

Refer to the data provided in Table 10.3 below to answer the following question(s). Table 10.3 -Refer to Table 10.3. If workers are paid $600 per day, then the firm is profit maximizing when it hires ________ workers.

If the marginal product of a worker for a calculator manufacturer is 10 calculators, and the price of a calculator is $10, the firm's marginal revenue product is

Related to the Economics in Practice on page 218: A study discussed in the Economics in Practice found that NFL teams that trade two lower draft picks for one higher pick tend to ________ player productivity and therefore ________ for that pick in terms of the draft-pick trade.

Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. Figure 10.3 -Refer to Figure 10.3. If labor supply is given by S₀ and the firm is using K₁ units of capital, this firm should hire ________ units of labor to maximize profit.

The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a soccer match at the stadium is $10. Which of the following is true?

Related to the Economics in Practice on page 218: A study discussed in the Economics in Practice found that NFL teams tend to ________ for the top pick in the annual player draft in terms of trades they make, ________ player productivity.

The return to a factor that is in fixed supply is a pure rent.

In the product market, changes in technology affect the marginal ________ of a unit of output. In the labor market, changes in technology affect the marginal ________ of a unit of labor input.

The number of seats available in an arena is fixed at 20,000. The equilibrium price for a ticket to a basketball game at the arena is $80. The equilibrium price for a ticket to a hockey game at the arena is $95. Which of the following is true?

If the price of the product produced by labor decreases, the marginal revenue product of labor curve will

You have been hired by a data processing firm to provide economic advice. The owner of the firm tells you that the firm's only variable input is the number of data-entry operators. The hourly wage for data-entry operators is $10.00. The marginal revenue product curve for data-entry operators reaches its maximum at three workers with a marginal revenue product of $12.00. What advice would you give this firm?

The value of the marginal product is the additional output produced by one additional unit of labor.

In ________, changes in technology affect the marginal revenue product of a unit of labor input. In ________, changes in technology affect the marginal cost of a unit of output.

Demand for the lithium ion batteries used in the production of Tesla automobiles is

A firm will use land up to the point at which MRP_A = P_A, where A is acres of land.

Refer to the information provided in Figure 10.4 below to answer the question(s) that follow. Figure 10.4 -Refer to Figure 10.4. Firms will

Refer to the data provided in Table 10.1 below to answer the following question(s). Table 10.1 Total Labor Units Total Product Marginal Product of Price per (employees) (T-shirts per day) Labor (per day) T-shirt 0 0 - - 1 20 20 \ 5 2 50 30 5 3 75 25 5 4 95 20 5 5 110 15 5 -Refer to Table 10.1. The maximum payment to labor per day that this profit-maximizing T-shirt manufacturer would be willing to pay to hire three workers per day is

To get a profit-maximizing firm in a perfectly competitive labor market to hire another worker, the firm will need to

If the wage rate is greater than the marginal revenue product of labor, the firm should ________ to maximize profits.

The marginal cost of a unit of labor in a perfectly competitive labor market is