[Solved] All of the Following Statements,except One,are Correct When a Trade

Which of the following would cause,graphically,a shift to the right in the demand curve for a factor? A)A decrease in the price of that factor. B)An increase in the price of a substitute factor. C)A decrease in the price of the product produced by the factor. D)An increase in the marginal product of a substitute factor.

If most people's desire for leisure increases,which one of the following statements is correct? A)The wage rate would fall,and the quantity of products produced would rise. B)Both the wage rate and the quantity of products produced would fall. C)The wage rate would fall,and the demand for labour would increase. D)The wage rate would rise,and the quantity of products produced would fall. E)Both the wage rate and the quantity of products produced would rise.

All of the following statements,except one,concerning the concept of economic rent are correct.Which is the exception? A)The more inelastic the supply of a factor,the more economic rent that factor earns. B)A factor that has a perfectly inelastic supply will earn no transfer earnings. C)It is possible for a factor to receive both economic rent and transfer earnings. D)If we assume that land has only one use,such as agriculture,then all of its return is economic rent. E)The higher the transfer earnings of a factor,the higher its economic rent will be.

When is the marginal revenue product of a factor at a maximum? A)When its marginal product is at a maximum. B)When the firm's total product is at a maximum. C)When its marginal product is at a minimum. D)When both its marginal product and the firm's total product are at a maximum. E)When average product is at its maximum.

If a firm is operating in a monopsony market,which of the following statements is correct? A)The firm can hire additional labour at the same wage rate it is currently paying. B)The firm would hire more labour in the monopsony situation than in the competitive situation. C)The firm faces an upward-sloping supply of labour curve. D)The MPRL declines faster in the case of the monopsony situation than in the competitive one. E)The firm's demand for labour curve is downward-sloping in the situation of the monopsony market and horizontal in the case of the competitive one.

Although supply and demand analysis can be used to analyze the product market,it cannot be used to analyze the factor market.

Marginal revenue product is the increase in a firm's total revenue that results from the use of one more unit of input.

An employer operating under conditions of a perfectly competitive labour market will hire labour up to the point where the marginal product of labour equals the wage rate.

If the product market is imperfectly competitive rather than perfectly competitive,the marginal revenue product curve declines faster.

The fact that neither of the authors works weekends at McDonald's demonstrates that they both value an extra hour of leisure over the added hourly income that they could earn.