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
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
Related textbook solutions
Related questions
1.Individual farmers cannot individually affect market price because
a)There is an infinite demand for their goods.
b) Demand is perfectly inelastic for the farmer's produce.
c)Their individual production is insignificant relative to the production of the market.
d)The government exercises control over the market power of competitive firms.
2.Compared to the early 1950s, today farm output per labor-hour is
| Ā | a)10 times greater than it was then. |
| b) | The same as it was then. |
| c) | 20 times greater than it was then. |
| d) | 20 percent less than it was then. |
3.Because farm products have a low price elasticity of demand, a small change in farm output will have
| a) | An indeterminate effect on price. |
| b) | No effect on price. |
| c) | A smaller effect on price. |
| d) | A larger effect on price. |
4.The price elasticity of demand for food is
| a) | Perfectly inelastic. |
| b) | Relatively inelastic. |
| c) | Relatively elastic. |
| d) | Perfectly elastic. |
5.In order to continue earning an economic profit, individual farmers must
| a) | Expand their rate of output until marginal cost equals zero. |
| b) | Charge higher prices than their competitors. |
| c) | Continue to improve their productivity. |
| d) | Charge lower prices than their competitors. |
6.If a price support is maintained above the equilibrium price, the result will be a
| a) | Market price that is too low. |
| b) | Market price equal to the equilibrium price. |
| c) | Surplus of the product. |
| d) | Shortage of the product. |
7.The primary focus of U.S. farm policy has been
| a) | Subsidies. |
| b) | Price supports. |
| c) | Low-interest loans. |
| d) | Tax credits for mechanical equipment. |
