Exam 15: The Demand for Resources

Answer the question on the basis of the following marginal product data for resources a and b.The output of these independent resources sells in a purely competitive market at $1 per unit. Inputs of a 1 25 2 20 3 15 4 10 5 5 6 2 7 1 Inputs of b M 1 40 2 36 3 32 4 24 5 20 6 16 7 8 Refer to the given data.Assuming the prices of resources a and b are $5 and $8 respectively,what is the least costly combination of resources for the firm to employ in producing 192 units of output?

Which of the following will not shift the demand curve for labor?

Suppose a firm is hiring resources l and m under purely competitive conditions to produce product Y,which sells for $2 in a purely competitive market.The prices of l and m are $10 and $4 respectively.In equilibrium the MPs of l and m,respectively,are:

Employers will hire more units of a resource if the:

Answer the question on the basis of the following data: Quantity MPof MRPof Quantity of MPof MRPof ofLabor Labor Labor Capital Capital Capital 1 15 \ 45 1 8 \ 24 2 12 36 2 6 18 3 9 27 3 5 15 4 6 18 4 4 12 5 3 9 5 3 9 6 1 3 6 2 6 Refer to the given data.If the prices of labor and capital are $9 and $15 respectively,and labor and capital are the only inputs,at the profit-maximizing level of output,the firm's total costs will be:

Answer the question on the basis of the following data: Quantity MPof MRPof Quantity of MPof MRPof ofLabor Labor Labor Capital Capital Capital 1 15 \ 45 1 8 \ 24 2 12 36 2 6 18 3 9 27 3 5 15 4 6 18 4 4 12 5 3 9 5 3 9 6 1 3 6 2 6 Refer to the given data.If the prices of labor and capital are $9 and $15 respectively,and labor and capital are the only inputs,the firm's economic profits will be:

The labor demand curve of an imperfectly competitive seller is downsloping:

If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes,the:

The relationship between the elasticity of product demand and the elasticity of demand for labor employed in its production is such that,other things being equal:

Answer the question on the basis of the following information.A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired;32 when two workers are hired;37 when three are hired;and 40 when four are hired.The farmer's product sells for $3 per unit and the wage rate is $13 per worker. Refer to the given information.What is the farmer's profit-maximizing output?

It will be profitable for a firm to hire additional units of any resource up to the point at which its MRP is equal to its MRC.

Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded decreased by 10 percent.Given a fixed labor demand curve,we can conclude that:

Answer the question on the basis of the following information: Harry owns a barber shop and charges $6 per haircut.By hiring one barber at $10 per hour,the shop can provide 24 haircuts per eight-hour day.By hiring a second barber at the same wage rate,the shop can now provide a total of 42 haircuts per day. Refer to the given information.The MRP of the second barber is:

Suppose capital and labor are used in fixed proportions so that each machine requires only one worker.If a decline in the price of capital occurs,then the demand for labor will:

The demand for airline pilots results from the demand for air travel.This fact is an example of:

Answer the question on the basis of the following data: Quantity MPof MRPof Quantity of MPof MRPof ofLabor Labor Labor Capital Capital Capital 1 15 \ 45 1 8 \ 24 2 12 36 2 6 18 3 9 27 3 5 15 4 6 18 4 4 12 5 3 9 5 3 9 6 1 3 6 2 6 Refer to the given data.If the prices of labor and capital are $9 and $15 respectively,the profit-maximizing firm will hire:

Assume a firm purchases resources a and b under purely competitive conditions and combines these resources to produce X.Product X is sold in a purely competitive market.The MPs of a and b are 6 and 3 respectively and the prices of a and b are $12 and $6 respectively.If equilibrium exists,the price of X will be:

If technology dictates that labor and capital must be used in fixed proportions,an increase in the price of capital will cause a firm to use:

The change in a firm's total revenue that results from hiring an additional worker is measured by:

The marginal revenue product schedule is: