Exam 16: The Demand for Resources

A firm operating in competitive input and output markets purchases new technology, which shifts the total product schedule from A to B, as shown in the data in the table. At the market wage rate of $30 and product price of $5, this firm will

A winner-takes-all market, like that for entertainers, exhibits huge differences between the top talents and the next tier of artists in all of the following aspects, except

If the marginal revenue product (MRP)of labor is less than the wage rate,

The labor demand curve of a purely competitive seller

The strength of the demand for a resource depends on the following factors, except the

Which of the following occupations is not among the 10 projected fastest-growing U.S. occupations in terms of percentage increases from 2016 to 2026?

What is the profit-maximizing condition for the use of a resource?

If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the

A profit-maximizing firm will use additional units of resources for production until

A firm will find it profitable to hire workers up to the point at which their

The demand for a resource depends primarily on

How will a change in productivity change the demand for a resource? What three factors will affect productivity?

Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $50 and $90, respectively. Resource X can be hired at $100 per unit and resource Y at $40 per unit. The firm

Assuming pure competition, which of the following are equivalents?

Other things equal, the less competitive the market in which a firm sells its product, the less elastic will be its resource demand curve.

The introduction of automatic elevator equipment allowed firms to handle the movement of people in a multistory building at less cost, thus decreasing the demand for elevator operators. The best explanation for this change is that the

If the substitution effect outweighs the output effect, an increase in the price of a substitute resource will increase the demand for labor.

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. At what price does each shoe shine sell?

A business is employing inputs such that the marginal product of labor is 40 and the marginal product of capital is 90. The price of labor is $20, and the price of capital is $30. If the business wants to minimize costs while keeping output constant, then it should

Which of the following statements is true? Other things equal, the demand for labor will be less elastic the