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
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upward sloping
question
Resource price differentials that do not trigger the reallocation of resources are known as
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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
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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