Wk 5 - Apply Summative Assessment The Microeconomics of Resource Markets
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Course
Microeconomics
Institution
Microeconomics
Wk 5 - Apply Summative Assessment The Microeconomics of Resource Markets
1.
Stephanie produces earrings. She sells each pair of earrings for $6. The table below shows how
many pairs of earrings can be produced, depending on the number of workers Stephanie hires.
Fill in the “Total Revenue” ...
1.
Stephanie produces earrings. She sells each pair of earrings for $6. The table below shows how many pairs of earrings can be produced, depending on the number of workers Stephanie hires. Fill in the “Total Revenue” and “Marginal Revenue Product” columns using the information given. Assume this is a perfectly competitive market. Instructions: Enter your answers as a whole number. Stephanie's Earring Shop and Revenues
Labor
(workers)Total Product
(pairs of
earrings)Marginal
Product
(pairs of
earrings)Price
(dollars)Total
Revenue
(dollars)Marginal
Revenue
Product
(dollars)
00—$6$0 —
116166 $ 231156
344136
456126
566106
67376
77746 2.Stephanie is looking to hire workers to help her produce earrings. The current hourly market wage rate is $18 per worker. Assume this is a perfectly competitive market. Fill in the “Total Labor Cost” and “Marginal Resource Cost” columns in the table below. Instructions: Enter your answers as a whole number. Stephanie's Resource Costs
Labor
(workers)Total Labor Cost
(dollars per hour)Marginal Resource Cost
(dollars per hour)
0 $0 —
1 $ 2
3
4
5
6
796 96
186 90
264 78
336 72
396 60
438 42
462 24
18 18
36 18
54 18
72 18
90 18
108 18
126 18WK 5 - APPLY: SUMMATIVE ASSESSMENT: THE MICROECONOMICS OF RESOURCE MARKETSThis study source was downloaded by 100000850872992 from CourseHero.com on 06-01-2023 00:14:21 GMT -05:00
https://www.coursehero.com/file/161199453/Wk-5-Apply-Summative-Assessment-The-Microeconomics-of-Resource-Marketsdocx/ 3. 3a. How does a firm decide whether to hire an additional worker? Multiple Choice:
comparing the new worker's wage to existing workers' wages
comparing the cost of hiring the worker to the associated benefit
whether the worker will increase the total cost of production
whether the new worker will require training 3b. What is the cost associated with purchasing an additional resource?
Multiple Choice:
Marginal Resource Cost
Marginal Revenue Product
Marginal Resource Utilization
Marginal Fixed Cost
4.When economists say that the demand for labor is a derived demand, they mean that it is:
Multiple Choice:
dependent on government expenditures for public goods and services.
related to the demand for the product or service labor is producing.
based on the desire of businesses to exploit labor by paying below equilibrium wage rates.
based on the assumption that workers are trying to maximize their money incomes.
5.The following graph represents Ronnie's demand for labor to help him make cookies in his cookie
shop. Assume this is a perfectly competitive market. Suppose the current wage rate is $40 per day. 5a. Using the graph, draw Ronnie's marginal resource cost (MRC) curve for the first 5 workers. 5b. If the wage is $40 per day, how many workers will Ronnie want to hire? Multiple Choice:
2 workers
1 worker
3 workers
4 workers
WK 5 - APPLY: SUMMATIVE ASSESSMENT: THE MICROECONOMICS OF RESOURCE MARKETSThis study source was downloaded by 100000850872992 from CourseHero.com on 06-01-2023 00:14:21 GMT -05:00
https://www.coursehero.com/file/161199453/Wk-5-Apply-Summative-Assessment-The-Microeconomics-of-Resource-Marketsdocx/
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