Question4 The marginal resource cost curve for a firm is the cost of hiring an a

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Question4 The marginal resource cost curve for a firm is the cost of hiring an additional worker, and the curve is usually flat is the cost of hiring an additional worker, and the curve is usually downward sloping is the cost of hiring an additional worker, and the curve is usually upward sloping is the cost of producing additional units of output Question5 Sara owns a bakery and has seen a recent price decrease in the market for advanced baking ovens. If baking ovens are labor complements to bakers, what do you expect to have happen in the market for bakers? The MRC (marginal resource cost) curve for bakers will shift to the right (upward) and Sara will hire more bakers as a result The MRP (marginal revenue product) curve for bakers will shift to the left (downward) and Sara will hire more bakers as a result The MRP (marginal revenue product) curve for bakers will shift to the right (upward) and Sara will hire more bakers as a result The MRC (marginal resource cost) curve for bakers will shift to the left (downward) and Sara will hire more bakers as a result Question 6 The main reason behind the difference in wages between a medical doctor and a waiter is the demand for services provided by doctors is higher than the demand for services provided by waiters Doctors can unionize while waiters cannot on-the job experience is more valuable to doctors than waiters resources are less mobile in the industry for doctors than for waiters

Explanation / Answer

4)

Marginal Resource cost is cost of hiring additional worker. and generally it is upward sloping.

thus, right answer is " it is cost of hiring additional worker, it is usually upward sloping"

5)

It will increase productivity of labor, Hence MRP will shift to right and more worker shall be hired.

Right answer is “ MRP curve for bakers will shift to right and sara will hire more bakers as a result”

6)

Salary is decided based on the demand and supply forces, demand for doctor is relatively higher, hence doctor commands higher salary

Hence, right answer is " the demand for services provided by doctors is higher than the demand for services provided by waiters."

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