AP Lesson: Factor Markets
For a firm hiring labor in a perfectly competitive labor market, the marginal revenue product curve slopes downward after some point because as more of a factor is employed, which of the following declines?
Marginal factor cost
A firm's demand for a factor of production is directly related to how much of a good they intend to supply in another market. This idea is called
For a profit-maximizing firm, the labor demand curve is the same as
the value of the marginal product
marginal cost curve
both B and C are correct
Which of the following would be the best example of "derived demand"?
A manufacturer's decision to produce more washing machines has led to less demand or washing machine production workers
A manufacturer's decision to produce more washing machines has led to more demand for dishwashers
A manufacturer's decision to produce more washing machines has led to more demand for washing machine production workers
A decrease in the wages of assembly-line workers leads to an increase in the demand for robots in factories
An increase in the price of washing machines has led to a decrease in the demand for washing machine production workers
If the price drops for airline tickets, what can you expect to happen in the market for airline pilots?
the demand curve will shift left
the demand curve will shift right
the demand curve will not change
wages for pilots will increase
airlines will want to hire more pilots
If product market demand increases, what impact will there be on the factor market?
An increase is MRP
A decrease in MRP
A decrease in the number of workers hired
A decrease in the average wage for labour
A and C
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