Exam 12: The Supply of and Demand for Productive Resources

A firm currently employs 80 units of labor and 50 units of capital equipment to produce 3,000 hamster cages. Given the current input levels utilized, the marginal product of labor is 40 and the marginal product of capital is 10. If we assume that labor costs $20 per unit and capital costs $10 per unit,

Which of the following is most likely to result from an increase in the demand for computer technicians?

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

Table 12-3 -Refer to Table 12-3. Suppose that the firm pays its workers $75 per day. Each unit of output sells for $10. How many days of labor should the firm hire?

An increase in the price of a resource would cause

Table 12-7 -Refer to Table 12-7. If the market wage rate rose to $7 per day, how many workers should the firm employ if it wants to maximize profits?

An increase in the demand for a resource

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

Which of the following labor resources will likely have the most elastic supply schedule in the short run?

Which of the following events could increase the demand for labor?

The supply curve of a human resource will be more elastic the

Firms should hire additional units of a resource as long as the

If a college education did not increase worker productivity,

Ten cases of spring water are sold for $6 each, and the marginal product of the last unit of labor is 5. If the price of a case increases from $6 to $8, then the marginal revenue product of the last unit of labor would

Firms should hire additional units of a resource as long as the

If the demand for a consumer good decreases, the demand for resources required to make the good will

If the demand for a consumer good increases, the demand for resources required to make the good will

If the marginal physical product of more labor is twice as high as the marginal physical product of more machinery, a profit-maximizing firm will

If skilled labor costs three times as much as unskilled labor, a profit-maximizing firm will vary the quantity of each type of labor used until the

Suppose a change in technology increases the marginal product of labor. The result is