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

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turquoisegnu128

28 Sep 2018

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Ohio State University

Department

Economics

Course

ECON 2001.01

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All

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ECON 2001.01 Full Course Notes

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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.

Related Questions

1. Which of the following is characteristic of the marginal revenue product schedule for a resource?

a. It approximates the firm's demand curve for the resource.

b. It measures the change in total revenue resulting from employing an additional unit of the resource.

c. It is determined by multiplying the marginal product of the resource by the marginal revenue of the good produced.

d. All of these are true.

2. Assume Ajax Company employs 100 workers and the total revenue is $400,000 per week. When Ajax Company employs 101 workers, the total revenue is $405,000. The marginal revenue product of the 101st worker is:

a. $40,000.

b. $5,000.

c. $405,000.

d. none of these.

3. The optimal number of workers to be hired by a firm operating in a competitive labour market is where:

a. P = MRP.

b. MP = MRP.

c. MRP = w.

d. P = w.

cerisecoyote480

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firms capacity. If he adds one more worker, the firms total monthly revenue will increase from $54,000 to $66,000. If he adds one more tractor, monthly revenue will increase from $54,000 to $62,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month. Instructions: Enter your answers as whole numbers.

a. What is the marginal revenue product of labor? $ . The marginal revenue product of capital? $ .

b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? . What is the ratio of the marginal product of capital to the price of capital (MRPK/PK)? .

c. Is the firm using the least-costly combination of inputs? .

d. Does adding an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent? .

champagnewombat674

Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firms. If he adds one more worker, the firmâs total monthly revenue will increase from $52,000 to $64,000. If he adds one more tractor, monthly revenue will increase from $52,000 to $60,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month.

Instructions: Enter your answers as whole numbers.

a. What is the marginal revenue product of labor? $.

The marginal revenue product of capital? $.

b. What is the ratio of the marginal revenue product of labor to the price of labor (MRP_L/P_L)?.

What is the ratio of the marginal product of capital to the price of capital (MRP_K/P_K)?.

c. Is the firm using the least-costly combination of inputs? (Click to select)NoYes.

d. Does add an additional worker or adding an additional tractor yield a larger increase in total revenue for each dollar spent?

whitecat648

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

ECON 2001.01 Full Course Notes

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