Exam 25: The Supply of and Demand for Productive Resources

In a price-taker industry,the marginal revenue derived from the sale of an additional unit of the product is equal to the market price of the product.In these circumstances,

Table 12-5 -Refer to Table 12-5.What is the marginal product of the fourth worker?

A technological advance that increases labor productivity will

Developments in the computer software industry have made it extremely easy for firms to keep their books,conduct their own audits,and fill out the various tax forms.If accountants are an input in the accounting services industry,what will likely happen in the market for accountants? Is there a difference between the short run and the long run?

A profit-maximizing farmer will apply additional units of fertilizer until the marginal revenue product (MRP)of fertilizer is half the MRP of skilled labor when a unit of fertilizer

If a construction boom leads to an increase in the price of lumber,how will the higher lumber prices influence the wood furniture market?

There is an Italian soccer player who makes more than $10 million a year.Why?

If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold,then the marginal product of the fifth worker is

The following table indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. Table 12-1 -Refer to Table 12-1.If the security guards can be hired for $75 per day,how many guards should the shop hire?

Use the information given in the table below to answer the following question(s).Assume the firm hires labor competitively and sells its product in a competitive price-taker market at a price of $2 per unit. Table 12-7 -Refer to Table 12-7.If the market wage rate is $5 per day,how many workers should the firm employ if it wants to maximize profits?

Suppose the price of aluminum rises,and as a result,a manufacturing company purchases tin to use in place of the now higher-priced aluminum.This is referred to as

Which of the following most clearly illustrates the concept of "derived demand"?

Generally,the supply of a resource in the short run will be

Suppose a U.S.automotive manufacturer was considering moving to Mexico to take advantage of the lower wage rates for unskilled Mexican labor.The typical Mexican worker could produce 20 cars per day,while the firm's typical U.S.worker can produce 50 cars per day.If the firm currently pays its U.S.workers an hourly wage of $25,economic theory suggests that the firm should

Table 12-2 -Refer to Table 12-2.This table describes the number of baseballs a manufacturer can produce per day with different quantities of labor.Each baseball sells for $5 in a competitive market.What is the total revenue per day that the firm will earn if it employs five workers?

The supply of human capital to a particular use is

Why is it more expensive to acquire a new house in an urban area than in a rural area if the costs of labor and building materials are the same?

The marginal revenue product of a resource

Farmer Ted owned a worn-out piece of farmland for growing cotton,which he had been unable to rent for years.Suddenly he was getting offers from cotton farmers to lease his land.What is the most likely explanation of this?

If the demand for computer scientists increases relative to their supply,