1) in the employment of any resource, a firm should A) hire each input unit that
ID: 1097751 • Letter: 1
Question
1) in the employment of any resource, a firm should
A) hire each input unit that adds more to revenue than it adds to costs. B) equate marginal revenue product with the cost of the additional resource. C) A and B are both correct. D) hire each input unit provided its marginal physical product is greater than zero.
a)500 b)670 c)3350 D) $100.
3)We would expect unions to have a more difficult time negotiating higher wages for their members when
A) labor represents a small portion of total costs.
B) there are not good substitutes for labor in the production process.
C) the product produced makes up a small portion of families' budgets.
D) the product produced has several close substitutes.
4)Refer to the above figure. Which panel represents what happens in the U.S. job market in the short-run when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.?
A) Panel A B)Panel B C)Panel C D)Panel D
5)A rule of thumb in the employment of resources is to set
A) marginal revenue product (MRP) equal to marginal factor cost (MFC).
B) marginal physical product equal to marginal resource cost.
C) marginal revenue (MR) equal to marginal cost (MC).
D) none of the above
6) A firm that maximizes profits also
a) uses the least-cost combination of resources. B) is inefficient.
C) cuts corners in production processes so that its products are made too cheaply.
D) pays input prices lower than other firms do.
1) in the employment of any resource, a firm should A) hire each input unit that adds more to revenue than it adds to costs. B) equate marginal revenue product with the cost of the additional resource. C) A and B are both correct. D) hire each input unit provided its marginal physical product is greater than zero. 4)Refer to the above figure. Which panel represents what happens in the U.S. job market in the short-run when U.S. firms substitute labor outside of the U.S. for labor inside the U.S.? A) Panel A B)Panel B C)Panel C D)Panel D 5)A rule of thumb in the employment of resources is to set A) marginal revenue product (MRP) equal to marginal factor cost (MFC). B) marginal physical product equal to marginal resource cost. C) marginal revenue (MR) equal to marginal cost (MC). D) none of the above 6) A firm that maximizes profits also a) uses the least-cost combination of resources. B) is inefficient. C) cuts corners in production processes so that its products are made too cheaply. D) pays input prices lower than other firms do. 2) Refer to the above table. If the price of the good produced is $5, the marginal revenue product of the 5th worker is $5 a)500 b)670 c)3350 D) $100. 3)We would expect unions to have a more difficult time negotiating higher wages for their members when A) labor represents a small portion of total costs. B) there are not good substitutes for labor in the production process. C) the product produced makes up a small portion of families' budgets. D) the product produced has several close substituteExplanation / Answer
my answer is 1)D 2)A 3)C 4)D 5)B 6)A
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