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15 terms

Econ Final

STUDY
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:
the amount an additional worker adds to a firm
'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