Micro test10

Micro test10 - quantity demanded, but not demand, for the...

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Test 1 ) . Marginal revenue product is the increase in: Total revenue from the use of an additional unit of a resource 2 ) The marginal revenue product curve for an input is downward sloping because of the law of diminishing returns.  (10pts) FALSE 3 ) The marginal revenue product of labor in a competitive market decreases as a firm increases the quantity of labor used because of the: Law of diminishing returns 4 ) Increased resource productivity will, ceteris paribus , increase a firm's demand for an input.  (10pts) FALSE 5 ) An example of derived demand is the demand for: Machines by businesses 6 ) If the price of a product produced by an input decreases, the
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Unformatted text preview: quantity demanded, but not demand, for the input will also decrease. FALSE 7 ) Marginal revenue product describes the: Revenue received for the output produced by the last unit of labor employed 8 ) According to proponents of human capital theory, education: (10pts) Increases a worker's productivity 9 ) Why is the demand for labor referred to as a "derived" demand? It stems from the drive to minimize production costs to achieve economic efficiency 10 ) A monopsonist in equilibrium will hire labor at a level where MRP = MRC > W . (10pts) FALSE...
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Micro test10 - quantity demanded, but not demand, for the...

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