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Exam 16: The Demand for Resources

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Question 151

Multiple Choice

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In which of the cases given below will the elasticity of demand for workers who produce yo-yos be most inelastic? The price elasticity of demand for yo-yos is

A) 5, and labor's share of total costs is 20 percent.
B) 5, and labor's share of total costs is 75 percent.
C) 0.1, and labor's share of total costs is 20 percent.
D) 0.1, and labor's share of total costs is 75 percent.

E) None of the above
F) B) and C)

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Question 152

Multiple Choice

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Refer to the table. The marginal revenue product of the third unit of resource is

A) $4.
B) $8.
C) $18.
D) $72.

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

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Question 153

Multiple Choice

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A firm combines two resources, A and B, to produce an output, Q. Their respective marginal revenue products are $30 and $21. A costs $15 a unit and B $7 a unit. To reduce the cost of Q,

If two resources are complementary, a decrease in the price of one will reduce the demand for the other.

Refer to the table. The price of the product being produced by this resource is

The demand for a productive resource is said to be "derived" because the demand for the factor

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 80 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is

Other things equal, the resource demand curve of an imperfectly competitive seller will

A profit-maximizing firm will employ labor up to the point where the

Assume that the coefficient of elasticity of product demand is 0.9 in industry A and is 2.8 in industry B. Other things equal, labor demand will be

A firm is producing 100 pencils per week. The production process requires labor and capital as inputs. Labor costs $6 per labor hour, and capital costs $12 per machine hour. Currently, the marginal product of labor is 18 pencils and the marginal product of capital is 36 pencils. To minimize the cost of producing this level of output, the firm should use

To achieve profit maximization, a firm must produce the profit-maximizing output with the least amount of economic resources.

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

Other things being equal, a firm's demand for labor is likely to be more elastic than its demand for capital if

A firm that hires labor in a purely competitive resource market is a

The profit-maximizing and the least-cost combination of inputs are

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. 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 238 units of output?

The table shows a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant. If the product the firm produces sells for a constant $2 per unit, the marginal revenue product of the third unit of the resource is

Two resource inputs, capital and labor, are complementary and used in fixed proportions. An increase in the price of capital will

Which type of occupation is expected by the U.S. Bureau of Labor Statistics to be the fastest growing from 2016 to 2026?