Exam 25: The Supply of and Demand for Productive Resources

If the MPP of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input proportions the firm should use

Profit-maximizing firms will expand their employment of each variable resource until

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 a firm used only two factors of production, labor (L) and capital (K), which of the following conditions would be present if the firm was minimizing its cost of production?

If the price of airline tickets falls, what will happen to the demand curve for flight attendants?

The supply curve of truck drivers is upward sloping and demand curve is downward sloping. A reduction in the price of hauling freight by truck relative to the price of hauling freight by rail will ____ the equilibrium wage of truck drivers and ____ the number of drivers employed.

The demand for most products is likely to be

If the United Auto Workers' Union obtained a 15 percent increase in the wages of its workers, employment in the auto industry would most likely fall if

Table 12-7 Assume the firm hires labor competitively and sells its product in a competitive price-taker market at a price of $2 per unit. -Refer to Table 12-7. What is the marginal revenue product of the fifth unit of labor?

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

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

Which of the following is a correct statement about the labor market?

Suppose land suitable for wheat production is highly inelastic. An increase in the demand for wheat bread will most likely

If the price of crude oil fell significantly, which of the following would be most likely to happen?

What concept implies that a firm's marginal revenue product curve for labor will slope downward in the short run?

Suppose the United Auto Workers' Union succeeded in obtaining a 10 percent increase in the wages of its workers and that the wage increase caused automobile prices to rise. Employment in the auto industry would be most likely to decline significantly if

Which of the following expresses the correct decision-making rule for a profit-maximizing firm hiring units of labor?

Prices in resource markets

Figure 12-3 -Refer to Figure 12-3. This figure depicts labor demand and supply in a nonunionized labor market. The original equilibrium is at point A. If a labor union subsequently establishes a union shop and negotiates an hourly wage of $20, then there will be an excess

The notion that the demand for inputs depends on the demand for outputs is termed