Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:
A. multiplying total product by product price.
B. multiplying marginal product by product price.
C. dividing total revenue by marginal product.
D. comparing marginal product with various possible input prices.
Answer: B
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The rise in average living standards experienced by most industrialized countries:
A. was more rapid before 1870 than after 1870. B. has been continuous over the course of human history. C. has resulted primarily from an increase in population worldwide. D. has been more rapid since 1950 than before 1950.
The table above lists the market shares of the twenty makers of personal computers. The Herfindahl-Hirschman Index for this industry equals
A) 5. B) 250. C) 1250. D) 500.
Which of the following statements regarding labor supply is false?
a. Jerry's labor supply curve can bend backward if the income effect of a higher wage rate outweighs the substitution effect. b. Bob's labor supply curve will not bend backward if the wage rate is never so high that the income effect outweighs the substitution effect. c. If there is a wage rate above which the income effect is at least as great as the substitution effect, the labor supply curve will be vertical or bend backward. d. The labor supply curve will slope upward if the income effect dominates the substitution effect. e. Hayden's offer to work more hours as the result of a wage increase suggests that the substitution effect dominates the income effect.
If the quantity demanded exceeds the quantity supplied in a market, then the result is which of the following?
a. Deadweight loss b. Inefficiency c. Underproduction d. Each of these are true.