Question 1

Refer to the table, which gives data for a firm that is hiring labor in a purely competitive market. If the wage rate is $56, how many workers will the firm choose to employ?

Accepted Answer

The answer of  Refer to the table, which gives...

Question 2

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively.  How many units of output are produced when 2 workers are employed?

Accepted Answer

The answer of Assume Manfred's Shoe Shine Parlor hires labor,...

Question 3

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively.  If the wage rate is $11, how many workers will Manfred hire to maximize profits?

Accepted Answer

The answer of Assume Manfred's Shoe Shine Parlor hires labor,...

Question 4

A farmer who has 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, and 40 when four are hired. The farmer's product sells for $4 per unit, and the wage rate is $30 per worker. The marginal revenue product of the third worker is

Accepted Answer

The marginal revenue product (MRP) of the third worker is calculated by the increase in total product (output) due to hiring the third worker, multiplied by the price per unit. The total product increases from 32 units with two workers to 37 units with three workers, an increase of 5 units. At $4 per unit, the MRP of the third worker is 5 units * $4/unit = $20.

Question 5

A farmer who has 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, and 40 when four are hired. The farmer's product sells for $2.50 per unit, and the wage rate is $19 per worker. The marginal product of the first worker is

Accepted Answer

The marginal product of the first worker is the increase in total product from hiring the first worker, which is 24 units since there were no units produced before the first worker was hired.

Question 6

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively.  At what price does each shoe shine sell?

Accepted Answer

The answer of Assume Manfred's Shoe Shine Parlor hires labor,...

Question 7

Refer to the table, which gives data for a firm that is hiring labor in a purely competitive market. If the wage rate is $4.5, how many workers will the firm choose to employ?

Accepted Answer

The answer of  Refer to the table, which gives...

Question 8

Refer to the given table. If the firm is hiring workers under purely competitive conditions at a wage rate of $10, it will employ

Accepted Answer

The answer of  Refer to the given table. If...

Question 9

If one worker can pick $30 worth of grapes and two workers together can pick $70 worth of grapes, the

Accepted Answer

The marginal revenue product of the second worker is the additional revenue generated by adding the second worker, which is $70 - $30 = $40.

Question 10

Refer to the given table. If the firm is hiring workers under purely competitive conditions at a wage rate of $22, it will employ

Accepted Answer

The answer of  Refer to the given table. If...

Question 11

Refer to the given table. This firm is

Accepted Answer

The answer of  Refer to the given table. This...

Question 12

Harry owns a barbershop and charges $15 per haircut. By hiring one barber at $12 per hour, the shop can provide 18 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 39 haircuts per day. The MP of the second barber is

Accepted Answer

The Marginal Product (MP) of the second barber is the additional number of haircuts the shop can provide by hiring him. With one barber, the shop can provide 18 haircuts per day. With two barbers, it can provide 39 haircuts. Therefore, the MP of the second barber is 39 - 18 = 21 haircuts.

Question 13

Harry owns a barbershop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. Harry should

Accepted Answer

With one barber, the shop's daily revenue from haircuts is 24 * $6 = $144. The cost of the barber is $10 * 8 = $80, leaving a profit of $64. With two barbers, the total revenue is 42 * $6 = $252. The total cost for two barbers is 2 * $80 = $160. The new profit is $252 - $160 = $92. The second barber adds $92 - $64 = $28 to profits.

Question 14

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively.  If the wage rate is $11 and Manfred's only fixed input is capital, the total cost of which is $40, then what will be his economic profit?

Accepted Answer

The answer of Assume Manfred's Shoe Shine Parlor hires labor,...

Question 15

Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $14 and her MRP is $10. On the basis of this information, we can say that

Accepted Answer

The restaurant is hiring workers at a cost (MRC) that exceeds the additional revenue (MRP) those workers bring in, indicating that reducing the number of workers could increase profits by lowering costs without reducing revenue as much.

Question 16

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively.  What is the marginal product of the fifth worker?

Accepted Answer

The answer of Assume Manfred's Shoe Shine Parlor hires labor,...

Question 17

Harry owns a barbershop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. The MRP of the second barber is

Accepted Answer

The Marginal Revenue Product (MRP) of the second barber is calculated by the additional revenue generated by hiring the second barber. With one barber, the shop can provide 24 haircuts per day, and with two barbers, it can provide 42 haircuts, an increase of 18 haircuts. Since each haircut is charged at $6, the MRP of the second barber is 18 haircuts * $6 = $108.

Question 18

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 80 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is

Accepted Answer

The Marginal Revenue Product (MRP) is calculated by multiplying the marginal product of labor (the additional output created by the additional worker) by the price of the product. Here, the additional output is 80 - 72 = 8 units, and the price per unit is $6. Therefore, MRP = 8 units * $6/unit = $48.

Question 19

Refer to the given table. Which of the following best represents the labor demand schedule for this firm?

Accepted Answer

The answer of  Refer to the given table. Which...

Question 20

Hiring the profit-maximizing combination of resources ensures that production costs will be minimized.

Accepted Answer

The answer of Hiring the profit-maximizing combination of resources ensures...

Quiz 16: The Demand for Resources

Refer to the table, which gives data for a firm that is hiring labor in a purely competitive market. If the wage rate is $56, how many workers will the firm choose to employ?

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. How many units of output are produced when 2 workers are employed?

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. If the wage rate is $11, how many workers will Manfred hire to maximize profits?

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. At what price does each shoe shine sell?

Refer to the table, which gives data for a firm that is hiring labor in a purely competitive market. If the wage rate is $4.5, how many workers will the firm choose to employ?

Refer to the given table. If the firm is hiring workers under purely competitive conditions at a wage rate of $10, it will employ

If one worker can pick $30 worth of grapes and two workers together can pick $70 worth of grapes, the

Refer to the given table. If the firm is hiring workers under purely competitive conditions at a wage rate of $22, it will employ

Refer to the given table. This firm is

Harry owns a barbershop and charges $15 per haircut. By hiring one barber at $12 per hour, the shop can provide 18 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 39 haircuts per day. The MP of the second barber is

Harry owns a barbershop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. Harry should

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. If the wage rate is $11 and Manfred's only fixed input is capital, the total cost of which is $40, then what will be his economic profit?

Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $14 and her MRP is $10. On the basis of this information, we can say that

Assume Manfred's Shoe Shine Parlor hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. What is the marginal product of the fifth worker?

Harry owns a barbershop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per eight-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per day. The MRP of the second barber is

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 80 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is

Refer to the given table. Which of the following best represents the labor demand schedule for this firm?

Hiring the profit-maximizing combination of resources ensures that production costs will be minimized.