5. We would expect that a fall in the labor supply will have a proportionately smaller effect on the market wage rate when:
a. workers can easily be replaced by capital goods
b. the product is produced in a perfectly competitive industry
c. the product produced in the industry has very few substitutes
d. labor represents a relatively small portion of total costs
4. Suppose a new technology allows firms to substitute mechanical tomato pickers for farm laborers. As a result, the demand curve for farm laborers will:
a. become less elastic
b. become more elastic
c. shift to the right
d. not be affected
3. What does the marginal physical product equal when the amount of labor goes from 10 to 11?
Labor input (workers/day)_____ total physical product (output/day)
10 ________________________500
11_________________________600
12________________________ 690
13 ________________________760
14 ________________________800
a. 54.5
b. 100
c. 600
d. 500
1. A farm's marginal factor cost describes:
a. the change in total foxed cost that reseults from hiring one more unit of input
b. the increase in the firm's total revenue as one more unit of output is sold
c. the change in total variable cost that results from th production of an extra unit of output
d. the change in total cost that results from using one more unit of an input