Assume that the product price is $2 per unit, the price of the factor of product
ID: 1232324 • Letter: A
Question
Assume that the product price is $2 per unit, the price of the factor of production is $40 per unit, and 8 units are being hired. Profit can be maximized by hiring _______ unit(s).Answer
A. 2 more
B. 1 more
C. 1 fewer
D. 3 fewer
If a firm is using a factor of production from a perfectly competitive market such that MFC > MRP, then profit:
Answer
A. can be increased by decreasing the factor price.
B. is maximized.
C. can be increased by using more of the factor.
D. can be increased by using less of the factor.
The amount a factor adds to a firm's total cost per period is called:
Answer
A. marginal factor cost.
B. marginal fixed cost.
C. marginal cost.
D. MFR .
Which of the following statements is true?
Answer
A. Marginal product is the change in total revenue divided by a one unit change in a factor.
B. Marginal factor cost is equal to average total cost.
C. Marginal revenue product is marginal product times marginal revenue.
D. Marginal revenue is the change in total output divided by the change in output
Given an increase in the demand for labor, the more the supply of labor rises:
Answer
A. the fewer the number of workers employed.
B. the greater the increase in wages.
C. the greater the increase in workers employed at the original wage rate.
D. the less the increase in wages and the greater the number of workers employed.
Which of the following statements is true?
Answer
A. The market demand curve for labor is found by adding the supply curves for labor of individual firms.
B. The market demand for labor will change as a result of a change in the use of a complementary factor or a substitute factor.
C. The market demand curve for labor is vertical at the profit-maximizing wage.
D. A firm's demand for labor is the upward-sloping portion of the MRP curve for labor.
If marginal product is _______ , marginal revenue product must be _______ .
Answer
A. rising; falling
B. rising; zero
C. falling; rising
D. falling; falling
If a firm is using a factor of production from a perfectly competitive market such that MFC < MRP, then profit:
Answer
A. can be increased by using more of the factor.
B. can be increased by increasing the factor price.
C. is maximized.
D. can be increased by using less of the factor.
Which of the following statements is true?
Answer
A. Leisure is a normal good.
B. The demand for leisure is perfectly inelastic.
C. All other things unchanged, an increase in income will decrease the demand for leisure.
D. Leisure is an inferior good.
Explanation / Answer
Assume that the product price is $2 per unit, the price of the factor of production is $40 per unit, and 8 units are being hired. Profit can be maximized by hiring _______ unit(s).
Answer
A. 2 more
B. 1 more
C. 1 fewer
D. 3 fewer
If a firm is using a factor of production from a perfectly competitive market such that MFC > MRP, then profit:
Answer
A. can be increased by decreasing the factor price.
B. is maximized.
C. can be increased by using more of the factor.
D. can be increased by using less of the factor.
The amount a factor adds to a firm's total cost per period is called:
Answer
A. marginal factor cost.
B. marginal fixed cost.
C. marginal cost.
D. MFR .
Which of the following statements is true?
Answer
A. Marginal product is the change in total revenue divided by a one unit change in a factor.
B. Marginal factor cost is equal to average total cost.
C. Marginal revenue product is marginal product times marginal revenue.
D. Marginal revenue is the change in total output divided by the change in output
Given an increase in the demand for labor, the more the supply of labor rises:
Answer
A. the fewer the number of workers employed.
B. the greater the increase in wages.
C. the greater the increase in workers employed at the original wage rate.
D. the less the increase in wages and the greater the number of workers employed.
Which of the following statements is true?
Answer
A. The market demand curve for labor is found by adding the supply curves for labor of individual firms.
B. The market demand for labor will change as a result of a change in the use of a complementary factor or a substitute factor.
C. The market demand curve for labor is vertical at the profit-maximizing wage.
D. A firm's demand for labor is the upward-sloping portion of the MRP curve for labor.
If marginal product is _______ , marginal revenue product must be _______ .
Answer
A. rising; falling
B. rising; zero
C. falling; rising
D. falling; falling
If a firm is using a factor of production from a perfectly competitive market such that MFC < MRP, then profit:
Answer
A. can be increased by using more of the factor.
B. can be increased by increasing the factor price.
C. is maximized.
D. can be increased by using less of the factor.
Which of the following statements is true?
Answer
A. Leisure is a normal good.
B. The demand for leisure is perfectly inelastic.
C. All other things unchanged, an increase in income will decrease the demand for leisure.
D. Leisure is an inferior good.
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