Q12Rachel - 1 Question 1 If MPa/Pa = MPb/Pb and MRPa/Pa =...

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1 Question 1 0 out of 1 points If MP a / P a = MP b / P b and MRP a / P a = MRP b / P b >1, this firm is: Selected Answer: [None Given] Correct Answer: producing its output with the least costly combination of resources, but is not producing the profit-maximizing output. Question 2 0 out of 1 points The general rule for hiring any input (say, labor) in the profit-maximizing amount is MRC = MRP. This rule takes the special form W = MRP (where W is the wage rate) when the: Selected Answer: [None Given] Correct Answer: firm is hiring labor under purely competitive conditions. Question 3 0 out of 1 points (Last Word) The rapid spread of ATMs has: Selected Answer: [None Given] Correct Answer: reduced the demand for bank tellers. Question 4 0 out of 1 points Refer to the above graph. Other things equal, an increase in the price of a complementary resource would cause a(n): Selected Answer: [None Given] Correct Answer: shift from D 3 to D 2 . Question 5 0 out of 1 points
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Suppose that a union successfully negotiated a 10 percent wage increase and the quantity of labor demanded decreased by 10 percent. Given a fixed labor demand curve, we can conclude that: Selected Answer: [None Given] Correct Answer: labor demand is unit-elastic. Question 6 0 out of 1 points Answer the next question(s) on the basis of the following information: Suppose a firm hires both labor ( L ) and capital ( C ) under purely competitive conditions. The price of labor is P L and that of capital is P C . The marginal product of labor is MP L and that of capital is MP C . The firm sells its product competitively at a price of P X . Refer to the above information. In competitive labor markets, the marginal cost of an additional unit of labor: Selected Answer: [None Given] Correct Answer: is equal to P L . Question 7 0 out of 1 points The labor demand curve of a firm: Selected Answer: [None Given] Correct Answer: will shift to the left if the price of the product the labor is producing falls. Question 8 0 out of 1 points Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $100 and $60 respectively. Resource X can be hired at $50 per unit and resource Y at $20 per unit. The firm: Selected Answer: [None Given] Correct Answer: should hire more of both X and Y. Question 9 0 out of 1 points Answer the next question(s) on the basis of the following data:
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Refer to the above data. If the prices of labor and capital are $9 and $15 respectively, the firm's total output will be: Selected Answer: [None Given] Correct Answer: 64 units. Question 10 0 out of 1 points The demand for airline pilots results from the demand for air travel. This fact is an example of: Selected Answer: [None Given] Correct Answer: the derived demand for labor. 2
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Q12Rachel - 1 Question 1 If MPa/Pa = MPb/Pb and MRPa/Pa =...

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