ECON: CHAPTER 14.
Quality content you can rely on!
Resource pricing - Answer: determines people's incomes.
The factors determining resource demand differ from those determining product
demand because the demand for products - Answer: depends on income and tastes,
but the demand for resources is a derived demand.
The demand for a resource is a derived demand. This is because - Answer: if there
were no demand for output, there would be no demand for input.
Resource demand curves slope downward because - Answer: of the diminishing
marginal product of the resource.
In 2009 General Motors (GM) announced that it would reduce employment by 21,000
workers. What does this decision reveal about how GM viewed its marginal revenue
product (MRP) and marginal resource cost (MRC)?
This decision indicates that for those 21,000 workers - Answer: the MRC was greater
than the MRP.
In 2009 General Motors (GM) announced that it would reduce employment by 21,000
workers. What does this decision reveal about how GM viewed its marginal revenue
product (MRP) and marginal resource cost (MRC)?
GM didn't reduce employment by more than 21,000 workers because - Answer: it
wanted to set the labor level where MRC equaled MRP to maximize profit.
What factors determine the elasticity of resource demand? - Answer: The ease of
resource substitutability, elasticity of product demand, and ratio of resource cost to total
cost
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
Quality content you can rely on!
Resource pricing - Answer: determines people's incomes.
The factors determining resource demand differ from those determining product
demand because the demand for products - Answer: depends on income and tastes,
but the demand for resources is a derived demand.
The demand for a resource is a derived demand. This is because - Answer: if there
were no demand for output, there would be no demand for input.
Resource demand curves slope downward because - Answer: of the diminishing
marginal product of the resource.
In 2009 General Motors (GM) announced that it would reduce employment by 21,000
workers. What does this decision reveal about how GM viewed its marginal revenue
product (MRP) and marginal resource cost (MRC)?
This decision indicates that for those 21,000 workers - Answer: the MRC was greater
than the MRP.
In 2009 General Motors (GM) announced that it would reduce employment by 21,000
workers. What does this decision reveal about how GM viewed its marginal revenue
product (MRP) and marginal resource cost (MRC)?
GM didn't reduce employment by more than 21,000 workers because - Answer: it
wanted to set the labor level where MRC equaled MRP to maximize profit.
What factors determine the elasticity of resource demand? - Answer: The ease of
resource substitutability, elasticity of product demand, and ratio of resource cost to total
cost
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
