Assuming a firm is selling its output in a purely competitive market, its resource demand schedule can be determined by:
C. Multiplying marginal product by product price.
Resource pricing is important because:
A. Of all of the reasons.
The marginal revenue product schedule is:
A. The firm's resource demand schedule.
Other things being equal, the resource-demand curve of an imperfectly competitive seller will.
B. Be less elastic than that of a purely competitive seller.
Marginal revenue product measure the:
C. Amount by which the extra production of one more worker increases a firm's total revenue.
Which of the following statements best illustrates the concept of 'derived demand'?
B. A decline in the demand for shoes will cause the demand for leather to decline.
Assume labour is the only variable input and that an additional input of labour increases total output from 72 to 78 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker:
D. is $36.
Jones owns a barber shop and charges $6 per haircut. By hiring one barber at $10 per hour, the shop can provide 24 haircuts per 8-hour day. By hiring a second barber at the same wage rate, the shop can now provide a total of 42 haircuts per 8-hour day. Refer to the above information. The MRP of the second barber:
