Consumer goods Consider the figure above: Point B represents a situation of both full resource employment and production efficiency. full employment but production inefficiency. both full resource employment and production efficiency. less than full employment but production efficiency. Capital goods

Consumer goods Consider the figure above: Point B represents a situation of both full resource employment and production efficiency. full employment but production inefficiency. both full resource employment and production efficiency. less than full employment but production efficiency. Capital goods

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 1.2P

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Unit 5 exam free response portion 1. Assume the following information is for a monopsony in a small Idaho town: ACDC Poster Inc. Number of Workers 0 1 Wage rate (per hour) $4.00 4.50 5.00 5.50 6.00 7.00 8.00 9.00 10.00 2 D. If the price for each output were $5: i. ii. 3456 7 8 Total Product 0 20 50 70 80 86 88 89 87 A. Given the information, what is the marginal physical product of the 4th worker? B. Explain why the marginal physical product increases, decreases, and then goes negative. What is this called and why does it happen? C. Assuming that the firm cannot use wage discrimination, what is the marginal resource cost of the 3rd worker? How did you calculate it? What would be the marginal revenue product of the 8th worker? How many workers will this monopsony hire and at what wage rate? Why? E. How would this market's wage rate and employment level be different if they were in a perfectly competitive labor market? F. Draw and properly label a generic monopsonistic labor market,…
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1. When one of the factors of production is fixed in quantity or is difficult to increase, increasing other factors of production will result in a less than proportionate increase in output 2. It is the capacity of a commodity to satisfy human wants during its utilization
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An economy's infrastructure refers to its Opublic capital goods, such as roads, schools, and power facilities. O financial and banking institutions. Oland and natural resources. O surplus supplies of unskilled labor.
4a
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