ArCh27_10e.doc - Chapter 27—Factor Markets: With Emphasis...

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Chapter 27—Factor Markets: With Emphasis on the Labor MarketMULTIPLE CHOICE1.A firm that is a price taker in a factor market faces a(n) __________ supply curve of factors.a.upward-slopingb.horizontalc.downward-slopingd.verticalANS: BPTS:1DIF:EasyNAT:Analytic
LOC:Labor markets2.The demand for factors (which arises from the demand for the products that the factors helpproduce) is called a(n) __________ demand.PTS:1DIF:EasyNAT:Analytic
LOC:Labor markets3.The term "derived demand" refers to the idea that a change in thePTS:1DIF:EasyNAT:Analytic
LOC:Labor markets4.Marginal revenue product (MRP) is thePTS:1DIF:EasyNAT:Analytic
LOC:Labor markets5.Marginalrevenue product is equal to marginal revenue multiplied bya.average fixed cost.b.marginal physical cost.c.marginal physical revenue.d.average total cost.e.none of the aboveANS: EPTS:1DIF:EasyNAT:Analytic
LOC:Labor markets814
6.Marginal revenue product is equal to marginal revenue multiplied byPTS:1DIF:EasyNAT:Analytic
LOC:Labor markets7.Marginal factor cost (MFC) isPTS:1DIF:EasyNAT:Analytic
LOC:Labor markets8.For a factor price taker, the factor supply curve is __________, whereas the market factor supply curveis __________.PTS:1DIF:ModerateNAT:Analytic
LOC:Labor marketsExhibit 27-1(1)(2)(3)(4)Units ofFactor XQuantityof OutputProductPriceMarginal RevenueProduct010$6118$6(A)224$6(B)329$6(C)432$6(D)

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Term
Spring
Professor
CaraTucker

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