Exam 25: The Supply of and Demand for Productive Resources

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

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. If the firm is maximizing the marginal product of labor, what is the firm's marginal revenue product?

A decrease in resource prices will increase the incentive of

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

Which of the following resources will have the most inelastic supply in the short run?

When the price of a resource increases, thereby causing the price of the final product to rise, consumers will purchase less of the final product. This is called the

The supply of both physical and human resources in the long run is determined primarily by

Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be

The following table indicates the reductions in total losses due to theft if a jewelry store hires additional security guards. If the security guards can be hired for $65 per day, how many guards should the shop hire?

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

When a resource price is below equilibrium,

At a low wage rate,

A new government study reveals that daily consumption of peanut butter increases life expectancy by 10 years. What will this do to the input markets for peanuts and peanut butter factory workers? Assuming bologna is a substitute for peanut butter, what will happen in the market for bologna factory workers?

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

A decrease in the marginal product of labor would be represented by

Figure 12-4 -Refer to Figure 12-4. With regard to cookie production, the figure implies

A firm's demand curve for labor shifts when the

Diane's Auto World installs tires on automobiles, light trucks, and sport utility vehicles. She is a profit-maximizing business owner whose firm operates in a competitive market. The marginal cost of installing a tire is $10. The marginal productivity of the last worker that Diane hired was 2 tires per hour. What is the maximum hourly wage that Diane was willing to pay the last worker hired?

The value marginal product of a resource is

The change in the total revenue of a firm that results from employing one additional unit of a factor of production is defined as the