Explain how to derive the demand for an input.
What will be an ideal response?
Input demand is the downward-sloping portion of the marginal revenue product curve. Marginal revenue product depends on both marginal physical product and the price or revenue from the sale of that product. Use only the downward-sloping portion. On points on the upward-sloping portion of MRP the firm can increase profits by hiring additional units of the input; therefore, the firm will not consider choosing any of the quantities along that portion of the MRP curve.
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The ticket price of zero for the viewing of a television show taping often results in a shortage of tickets which are frequently rationed on a first-come-first-served basis
Indicate whether the statement is true or false
Compared to businesses with market power, businesses in perfect competition will charge __________ prices and sell __________ output.
A. higher; less B. higher; more C. lower; less D. lower; more
A p-value of 0.03 means that there is only a 0.03% chance of obtaining the measured result.
Answer the following statement true (T) or false (F)
If the interest rate is 9 percent, to get back $800 in one year you would need to deposit ________ today.
A. $720.72. B. $714.29. C. $733.95. D. $791.00.