Question : 61) The demand curve for a variable factor always A) : 1384276

 

61) The demand curve for a variable factor is always

A) that factor’s marginal cost curve.

B) that factor’s MRP curve.

C) that factor’s MP curve.

D) steeper than that factor’s MRP curve.

E) flatter than that factor’s MRP curve.

62) In a perfectly competitive labour market, a profit-maximizing firm will employ labour until the

A) MPP = MRP.

B) wage = MP.

C) MRP = the product’s price.

D) wage = MRP.

E) wage = the product’s price.

63) The demand for a factor will be more elastic if

A) there is little substitutability between factors.

B) it is easier to substitute between this factor and others.

C) that factor determines a small percentage of total cost.

D) the demand for the good being produced is inelastic.

E) the supply of the factor is elastic.

64) The demand for a factor will be less elastic

A) if there is a high degree of substitutability between factors.

B) if marginal physical product decreases slowly as more of the factor is used.

C) the larger the extent of diminishing returns for the factor.

D) if the demand for the good being produced is elastic.

E) if the supply of the factor is elastic.

65) Consider a firm’s demand curve for labour. If a technological change makes it easier to substitute capital for labour, the demand curve for labour

A) shifts parallel to the right.

B) shifts parallel to the left.

C) becomes more inelastic.

D) becomes more elastic.

E) is not affected.

66) Consider a firm’s demand curve for labour. If a technological change makes it harder to substitute capital for labour, the demand curve for labour

A) shifts parallel to the right.

B) shifts parallel to the left.

C) becomes less elastic.

D) becomes more elastic.

E) is not affected.

67) Which of the following is the best example of a derived demand?

A) an increase in the wage for yoga instructors causes an increase in the demand for yoga classes

B) a decrease in the price of Pilates classes causes an increase in the demand for yoga classes

C) an increase in demand for yoga classes causes an increase in demand for yoga instructors

D) a decrease in the demand for yoga mats causes a decrease in demand for yoga classes

E) an increase in awareness about fitness causes an increase in demand for yoga classes

68) Refer to Figure 13-2. Assume that the firm is a perfect competitor and the price of the firm’s output is fixed. We know that the firm’s MRP curve is

A) the same shape as the firm’s marginal product curve for labour.

B) the same shape as the firm’s marginal revenue curve.

C) horizontal, if the firm is perfectly competitive.

D) steeper than the firm’s marginal product curve for labour.

E) flatter than the firm’s marginal product curve for labour.

69) Refer to Figure 13-2. This firm’s MRP curve is the firm’s

A) derived demand for copper plumbing pipe.

B) demand curve for labour.

C) market demand curve for copper plumbing pipe.

D) marginal product of labour curve.

E) total product curve for labour.

70) Refer to Figure 13-2. Suppose this firm initially has the marginal revenue product curve MRP1. One reason that the curve could shift to MRP2 is

A) a decrease in demand for the firm’s output, copper plumbing pipe.

B) an increase in the supply of labour.

C) a decrease in the wage rate.

D) a decrease in the market price of copper plumbing pipe.

E) an improvement in workers’ human capital.

 

 

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