question
If a firm hires a resource in a perfectly competitive resource market,
answer
it faces a horizontal marginal resource cost curve
question
The market supply curve of labor is
answer
upward sloping
question
Resource price differentials that do not trigger the reallocation of resources are known as
answer
permanent differentials
question
The more elastic the supply of a resource
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the greater is opportunity cost as a proportion of total earnings
question
The demand for a resource is derived from the consumer demand for the good or service produced by the resource
answer
True
question
In Exhibit 11-6, the marginal revenue product of the third machine is
answer
$9
question
In Exhibit 11-1, which unit of the resource is earning the most economic rent?
answer
the fifth
question
The price paid to a resource in totally fixed supply is called
answer
economic rent
question
The resource market is different from the product market because
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in the resource market, firms are demanders and households are suppliers.
question
The marginal revenue product curve slops downward only if the firm is a price searcher in the product market
answer
False
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