Exam 13: How Factor Markets Work

Consider the following demand and supply curves in factor markets. FIGURE 13-4 -Refer to Figure 13-4.The panel that best illustrates the supply of a factor to a specific firm in the economy is

The diagram below shows the MRP curve for a firm producing copper plumbing pipe.The factor of production being considered here is hours of labour. FIGURE 13-1 -Refer to Figure 13-1.This firm's MRP curve is the firm's

Suppose that the municipal government of Calgary decides to tax economic rent on a highly sought-after piece of land.The result would be

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm. TABLE 13-1 -Refer to Table 13-1.How many units of this factor of production would the profit-maximizing firm hire if the price of each unit of the factor was $30?

Consider the following demand and supply curves in factor markets. FIGURE 13-4 -Refer to Figure 13-4.Assume that all four factor markets are labour markets.The total amount paid to the workers is "transfer earnings" in diagram

Which of the following statements concerning factor mobility is FALSE?

The table below shows the total production for varying numbers of hours worked producing yo-yos.The firm sells its product and hires its workers in competitive markets. TABLE 13-4 -Refer to Table 13-4.A profit-maximizing firm will continue to hire labour to produce yo-yos until they have equated

Suppose the government decides,in the interest of "fairness," to impose a policy prohibiting factor-price differentials.The likely result would be

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm. TABLE 13-1 -Refer to Table 13-1.In order to determine this firm's profit-maximizing number of units of the variable factor of production,what necessary information is missing from the table?

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm. TABLE 13-1 -Refer to Table 13-1.The marginal revenue product of the 14th unit of the factor is

Kobe Bryant is a highly paid professional basketball player in the National Basketball Association.From the perspective of the whole NBA,Kobe Bryant's economic rent would be ________,while from the perspective of his individual team it would be ________.

Consider a small firm that is producing winter jackets.It can lease an additional sewing machine for one month for $2400.With this additional machine,the firm can produce an additional 4 jackets during that time period that it sells for $550 each.Hiring the marginal machine adds ________ to the firm's profit and so it should ________ the machine.

Other things equal,if a particular province has some non-monetary advantages,such as a temperate climate,the wage rate in that province will be

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm. TABLE 13-3 -Refer to Table 13-3.The marginal product of the 4th unit of the factor of production is

Suppose a cook at a diamond mining camp in Canada's North earns a much higher wage than a cook with similar training and experience at an office building in Halifax.Economists would likely call this

The three diagrams below each show a supply curve for oil tankers over a relatively short period of time. FIGURE 13-3 -Refer to Figure 13-3.Consider oil tankers as a factor of production (for example,for the production of gasoline).Which diagram shows the most mobility of this factor of production?

The table below shows the total production for varying numbers of hours worked producing yo-yos.The firm sells its product and hires its workers in competitive markets. TABLE 13-4 -Refer to Table 13-4.Which of the following statements best describes the situation of this firm when it is employing 12 hours of labour? The 12th hour of labour hired

Consider the following demand and supply curves in factor markets. FIGURE 13-4 -Refer to Figure 13-4.In diagrams 1 and 4,the marginal worker is earning

Consider the following table for a firm.The first column shows the number of units of a variable factor of production employed by the firm. TABLE 13-2 -Refer to Table 13-2.Suppose this firm is a perfect competitor and faces a given price of the product equal to $10 per unit.The marginal revenue product of the 3rd unit of the factor is

Which of the following would be least likely to earn economic rent?