ECON 2001.01 Study Guide - Quiz Guide: Marginal Revenue Productivity Theory Of Wages, Production Function, Perfect Competition

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Published on 28 Sep 2018
School
Ohio State University
Department
Economics
Course
ECON 2001.01
Professor
1.The following is a total-product schedule for a resource. Assume that the quantities of other resources
the firm employs remain constant. If the product the firm produces sells for a constant $2 per unit, the
marginal revenue product of the third unit of the resource is
Units of Resource
Total Product
1
24
2
42
3
54
4
64
5
72
A. $6.
B. $12.
C. $18.
D. $24
2. If one worker can pick $30 worth of grapes and two workers together can pick $50 worth of grapes, the
A. marginal revenue product of each worker is $25.
B. marginal revenue product of the first worker is $20.
C. marginal revenue product of the second worker is $20.
D. insufficient data to determine the marginal revenue product of either worker.
3 Labor unions may attempt to raise wage rates by
a. increasing the supply of labor.
b. forcing employers, under the threat of a strike, to pay above-equilibrium wage rates.
c. decreasing the demand for labor.
d. increasing the price of complementary resources.
4 Which of the following statement is correct?
A Price increase of the product increases MRP and demand for the resource.
B Technological Advances increase Marginal Product and therefore MRP/Demand.
C MRP eventually falls because of diminishing Marginal Returns.
D All of above
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Document Summary

1. the following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant. If the product the firm produces sells for a constant per unit, the marginal revenue product of the third unit of the resource is. 3 labor unions may attempt to raise wage rates by increasing the supply of labor. forcing employers, under the threat of a strike, to pay above-equilibrium wage rates. decreasing the demand for labor. increasing the price of complementary resources. A price increase of the product increases mrp and demand for the resource. B technological advances increase marginal product and therefore mrp/demand. C mrp eventually falls because of diminishing marginal returns. 5 the graph below shows a local labor market. Suppose mechanics in this local labor market collectively form an union and bargain for a. 6 use the same graph above to answer the following question.