15 terms

# Econ Final

###### PLAY
the purely competitive employer of resource A will maximize the profits from A by equating the:
Price of A with the MRP of A
Marginal Product is:
's total output
Assume labor is the only variable input and that an additional input of labor increases total output from 72 units to 78 units. if the product sells for \$6 per unit in a purely competitive market, the MRP of this additional worker is:
\$36
the change in a firm's total revenue that results form hiring an additional worker is measured by:
marginal revenue product
a profit- maximizing firm employs resources to the point where:
MRP>=MRC
for a firm selling its product in a purely competitive market, the marginal revenue product of labor can be found by:
multiplying marginal product by product price
Which of the following will not cause a shift in the demand for a resource X?
a decline in the price of resource X
marginal resource cost is:
the increase in total resource cost associated with the hire of one more unit of the resource
A farmer who has two 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; 40 when 4 are hired. the farmer's product sells for \$3 per unit and the wage rate is \$13 per worker

marginal product of second worker?
8
A farmer who has two 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; 40 when 4 are hired. the farmer's product sells for \$3 per unit and the wage rate is \$13 per worker

marginal revenue product of 2nd worker:
\$24
A farmer who has two 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; 40 when 4 are hired. the farmer's product sells for \$3 per unit and the wage rate is \$13 per worker

how many workers should the farmer hire?
3
which of the following will not shift the demand curve for labor?
change in the wage rate
employers will hire more units of a resource if:
the productivity of the resource increases
IF two resources are highly substitutable for one another:
an increase in the price for one will increase the demand for the other
the demand curve for labor would shift leftward as the result of:
decrease in the productivity for labor