Business demand for resources GA

Business demand for resources GA - Question 1 5 out of 5...

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Question 1 5 out of 5 points A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm: Selected Answer: should hire more labor because this will increase profits. Answers: should hire more labor because this will increase profits. should hire more labor, although this may either increase or decrease profits. is currently hiring the profit-maximizing amount of labor. is selling its product in an imperfectly competitive market. Question 2 5 out of 5 points Other things equal, the resource demand curve of an imperfectly competitive seller will: Selected Answer: be less elastic than that of a purely competitive seller. Answers: lie below its marginal revenue product curve. be subject to increasing marginal productivity. be less elastic than that of a purely competitive seller. be more elastic than that of a purely competitive seller. Question 3 5 out of 5 points Refer to the above graph. Each of the three labor demand curves shown slopes downward
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because of the: Selected Answer: law of diminishing returns. Answers: law of diminishing marginal utility. law of increasing opportunity costs. principal-agent problem. law of diminishing returns. Question 4 5 out of 5 points Suppose the demand for strawberries rises sharply, resulting in an increased price of strawberries. As it relates to strawberry pickers, we could expect the: Selected Answer: MRP curve to shift to the right. Answers: MRP curve to shift to the right. MRP curve to shift to the left. MRC curve to shift downward. MP curve to shift downward. Question 5 5 out of 5 points Refer to the above graph. Other things equal, an increase in the price of a complementary resource would cause a: Selected Answer:
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shift from D3 to D2. Answers: move from a to b on D1. shift from D2 to D3. shift from D3 to D2. move from b to a on D1. Question 6 5 out of 5 points Employers will hire more units of a resource if the: Selected Answer: productivity of the resource increases.
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