Question : 51) Refer to Table 13-4. What the MRP for the : 1384275

51) Refer to Table 13-4. What is the MRP for the 13th hour worked?

A) $78

B) $84

C) $5

D) $30

E) $10

52) Refer to Table 13-4. What is the marginal cost of the variable factor employed by this firm?

A) $0

B) $5

C) $10

D) $20

E) $30

53) Refer to Table 13-4. How many worker-hours should this profit-maximizing firm hire?

A) 11

B) 12

C) 13

D) 14

E) 15

54) Refer to Table 13-4. If the market price of yo-yos drops to $2.50, how many worker-hours should this profit-maximizing firm hire?

A) 11

B) 12

C) 13

D) 14

E) 15

55) Refer to Table 13-4.  Which of the following statements best describes the situation of this firm when it is employing 12 hours of labour?  The 12th hour of labour hired

A) adds $10 to revenue and costs $10 to hire, so this firm is maximizing its profit at 12 hours of labour.

B) adds $5 to revenue, but costs $10 to hire, so this firm should hire less labour.

C) adds $30 to revenue, but only costs $10 to hire, so this firm should hire more labour.

D) adds $8 to revenue, but costs $10 to hire, so this firm should hire less labour.

E) adds $40 to revenue, but only costs $10 to hire, so this firm should hire more labour.

56) Refer to Table 13-4. Which of the following statements best describes the situation of this firm when it is employing 15 hours of labour? The 15th hour of labour hired

A) adds $5 to revenue, but costs $10 to hire, so this firm should hire less labour.

B) adds $20 to revenue, but only costs $10 to hire, so this firm should hire more labour.

C) adds $10 to revenue and costs $10 to hire, so this firm is maximizing its profit at 15 hours of labour.

D) adds $50 to revenue, but only costs $10 to hire, so this firm should hire more labour.

E) adds $2 to revenue, but costs $10 to hire, so this firm should hire less labour.

57) Refer to Table 13-4.  If plotted on a graph, the marginal revenue product curve for the “number of hours worked” would be the same as

A) the firm’s marginal product curve, and would be downward sloping and concave to the origin.

B) the firm’s marginal product curve, and would be downward sloping and convex to the origin.

C) the firm’s demand curve for hours worked, and would be downward sloping and linear.

D) the firm’s demand curve for yo-yos, and would be downward sloping and linear.

E) the firm’s marginal revenue curve, and would be horizontal at $5 because this firm is operating in a competitive labour market.

58) In a competitive labour market, an increase in the demand for labour might be due to an increase in the

A) supply of labour.

B) wage rate.

C) supply of the product that labour produces.

D) demand for the product that labour produces.

E) supply of the other factors.

59) A demand for a factor of production is said to be “derived” because the factor’s demand depends

A) entirely on the cost of the factor.

B) entirely on corporate advertising.

C) heavily on government policy.

D) heavily on public choice.

E) on the demand for the good or services it helps to make.

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

A) A decrease in interest rates increases the demand for housing.

B) An increase in the wage rate causes firms to substitute capital for labour.

C) An increase in demand for cars will increase the demand for auto workers.

D) A decrease in the price of internet connection will increase the demand for tablet computers.

E) An increase in the price of butter increases the demand for margarine.