FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 15: The Demand for Resources

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 31

Multiple Choice

Review LaterAdd Note

Review Later

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?

A) 20.
B) 32.
C) 37.
D) 40.

E) C) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

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

A) resource substitutability.
B) rising marginal resource cost.
C) elasticity of resource demand.
D) the derived demand for labor.

E) A) and D)
F) A) and B)

Correct Answer

verified

Show Answer

Question 33

Multiple Choice

Review LaterAdd Note

Answer the question on the basis of the following data: $\begin{array}{cccccc}Quantity &MP of& MRP of &\text{Quantity of}& MP of &MRP of\\of Labor& Labor& Labor& Capital &Capital &Capital\\\hline1 & 15 & \$ 45 & 1 & 8 & \$ 24 \\2 & 12 & 36 & 2 & 6 & 18 \\3 & 9 & 27 & 3 & 5 & 15 \\4 & 6 & 18 & 4 & 4 & 12 \\5 & 3 & 9 & 5 & 3 & 9 \\6 & 1 & 3 & 6 & 2 & 6\end{array}$ Refer to the given data.If the prices of labor and capital are $9 and $15 respectively,the profit-maximizing firm will hire:

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:

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:

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 marginal product data for resources a and b.The output of these independent resources sells in a purely competitive market at $1 per unit. $\begin{array}{ccc}\begin{array}{ccc}\text { Inputs } \\\text { of a } & & \mathrm{MP}_{\mathrm{a}} \\\hline1 & & 25 \\2 & & 20 \\3 & & 15 \\4 & & 10 \\5 & & 5 \\6 & & 2 \\7 & & 1\end{array}\begin{array}{c}\begin{array}{c}\text { Inputs } \\\text { of } b\end{array} & & M P_{b} \\\hline1 & & 40 \\2 & & 36 \\3 & & 32 \\4 & & 24 \\5 & & 20 \\6 & & 16 \\7 & & 8\end{array}\end{array}$ 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?

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:

Answer the question on the basis of the following data: $\begin{array}{cccccc}Quantity &MP of& MRP of &\text{Quantity of}& MP of &MRP of\\of Labor& Labor& Labor& Capital &Capital &Capital\\\hline1 & 15 & \$ 45 & 1 & 8 & \$ 24 \\2 & 12 & 36 & 2 & 6 & 18 \\3 & 9 & 27 & 3 & 5 & 15 \\4 & 6 & 18 & 4 & 4 & 12 \\5 & 3 & 9 & 5 & 3 & 9 \\6 & 1 & 3 & 6 & 2 & 6\end{array}$ 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:

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:

Answer the question on the basis of the following data: $\begin{array}{cccccc}Quantity &MP of& MRP of &\text{Quantity of}& MP of &MRP of\\of Labor& Labor& Labor& Capital &Capital &Capital\\\hline1 & 15 & \$ 45 & 1 & 8 & \$ 24 \\2 & 12 & 36 & 2 & 6 & 18 \\3 & 9 & 27 & 3 & 5 & 15 \\4 & 6 & 18 & 4 & 4 & 12 \\5 & 3 & 9 & 5 & 3 & 9 \\6 & 1 & 3 & 6 & 2 & 6\end{array}$ 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:

Employers will hire more units of a resource if the:

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 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:

The marginal revenue product schedule is:

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.

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

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

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