micro 13 - Nate Neroni Micro 13 1 the factors that...

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Nate Neroni Micro 13 1. the factors that determine resource demand differ from the products that determine product demand by resources determine money incomes and ration resources to various industries and firms. Meanwhile, product demand is determined by market prices and supply. Resource demand curves slope downward because of the declines in the resources marginal product. 2. Units of labor Total product Marginal product Product price Total revenue Marginal revenue 0 0 0 2 0 0 1 17 17 2 34 34 2 31 14 2 62 28 3 43 12 2 86 24 4 53 10 2 106 22 5 60 7 2 120 14 6 65 5 2 130 10 A) 2 workers and then 4 workers. The firm will not hire more workers at these wage rates because it will not br profitable. B) Wage rate Workers hired 34 1 28 2 24 3 24 4 22 5 14 5 10 6
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C) Units of labor Total product Marginal product Product price Total revenue Marginal revenue prod. 0 0 0 2.20 0 0 1 17 17 2.20 37.4 37.4 2 31 14 2.15 66.65 29.25 3 43 12 2.10 90.30 23.65 4 53 10 2.05 108.65 18.35 5 60 7 2.00 120 11.35 6 65 5 1.95 126.75 6.75 The graph that is the most elastic would be the second graph for the imperfectly competive firm. This is because the product price changes as a result of more labor units hired.
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