1. In the above table, if this is a perfectly competitive firm and the market pr
ID: 1123131 • Letter: 1
Question
1. In the above table, if this is a perfectly competitive firm and the market price of the product is $8, what is the marginal revenue product of worker 3?
- 80
- 96
- 88
- 240
2. The effect of an import quota is
to shift the supply curve up by the amount of the quota.
to make the supply curve vertical at the amount of the quota.
to lead to a decrease in demand.
to make the supply curve horizontal at the amount of the quota.
3.
When a Japanese person buys a ukulele from a U.S. producer, there is a(n)
decrease in the supply of dollars in the foreign exchange market.
increase in the supply of dollars in the foreign exchange market.
decrease in the demand for dollars in the foreign exchange market.
increase in the demand for dollars in the foreign exchange market.
Quantity of Workers Total Product 0 0 1 7 2 18 3 30 4 40 5 48Explanation / Answer
1. In the above table, if this is a perfectly competitive firm and the market price of the product is $8,
The marginal revenue product of worker 3=TP of third worker - TP of the second worker
=30-18
=12
MRP= P*MP
=8*12
=96
Hence option second MRP=96 is the correct answer.
2.
When import quota is imposed the import quantity decrease and therefore domestic price increase and so it is expensive to purchase goods. Therefore the domestic demand decreases.
Hence option third is the correct answer.
Option third; to lead to a decrease in demand.
3.
When a Japanese person buys a ukulele from a U.S. producer, there is a(n) will be an increase in the demand for the U.S. dollar in the foreign exchange market.
This is because for purchasing the U.S. Goods Japan Yen need to be converted in the dollar.
Hence option fourth is the correct answer.
Option fourth; increase in the demand for dollars in the foreign exchange market.
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