Exam 16: The Demand for Resources

Wayne's Jacket Shop sells Wayne's jackets for $20 each. Wayne finds that when he hires different numbers of workers, the corresponding total revenues are as shown in the table. What is the marginal revenue product of the third worker?

Holding revenues constant, cost minimization by firms is equivalent to

The demand for computers is derived from the demand for the capital resources that are used to produce computers.

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $5 and $8 respectively, what is the profit-maximizing combination of resources?

A firm's demand schedule for a resource is the firm's marginal product schedule for the resource.

The MRP curve for labor

Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $14 and her MRP is $10. On the basis of this information, we can say that

Refer to the graph. Other things equal, a decrease in the price of a substitute resource would cause a

Refer to the graph. Other things equal, an increase in the price of substitute resource would cause a

The fact that monopoly and monopsony exist in resource markets means that

Other things equal, the relationship between the relative importance of a given type of labor in a firm's total costs and the elasticity of demand for that labor is such that the

When they were first introduced, ATMs

Under pure competition, the market price of an output is $3. The output schedule of a firm using input X is listed in the table. If the price of input X is $12, how many units of input X will the firm employ to maximize profits?

An increase in the price of capital will reduce the demand for labor if capital and labor are complementary resources.

From 2016 to 2026, the U.S. Bureau of Labor Statistics expects that there will be a fall in demand for

The demand for a resource will shift left if the price of a substitute resource decreases.

Refer to the table. Assume that the quantities of other resources employed by the firm remain constant. How many units of resource Y would the firm employ at a price of $50 per unit of Y?

A firm is hiring resources X, Y, and Z in the profit-maximizing amounts when

Refer to the given data. For the $16 to $14 range of wage rates, labor demand is