ECON 2000 Chapter : Chapter 10

8 views6 pages

azuremammoth471

15 Mar 2019

School

Department

Course

Professor

For unlimited access to Textbook Notes, a Class+ subscription is required.

Document Summary

4 concepts- derived demand, complementary and substitutable inputs, diminishing returns, and marginal revenue product. The central difference for demand for goods and services and demand for an input is a derived demand. Higher demand for cars, higher demand for welders. Derived demand- the demand for resources (inputs) that is dependent on the demand for the outputs those resources can be used to produce. Inputs are demanded by a firm if and only if households demand the good or service provided by that firm. Productivity of an input i the amount of output produced per unit of that input. A large amount of output is produced per unit of an input- the input is said to exhibit high productivity. A small amount of output is produced per unit of the input the input is said to have. Two input together- may complement each other new machine cant be worked without labor,

Related Questions

If labor productivity increases,

Question 8 options:

the demand for labor increases.

labor costs rise by equal increments.

jobs will relocate.

some workers will be laid off.

In labor markets, the substitution effect occurs when

Question 10 options:

a change in the price of a substitute input reduces the cost of capital.

a change in the price of a substitute input causes the demand for labor to change in the same direction.

a substitute good also functions as a compliment.

the cost of production falls enough that the firm will produce a larger amount of output.

The demand for labor is

Question 6 options:

	derived from the satisfaction that hiring the inputs provides the owner or manager of the firm more money.
	totally unrelated to the demand curve for the final product.
	derived from the demand for the final product being produced.
	derived from a utility-maximizing process similar to that used to derive the demand curve for goods and services.

blueleopard622

1. The slope of the total product curve measures

a. the marginal rate of technical substitution.

b. marginal product.

c. average product.

d. the maximum average product.

e. minimum product.

2. The Law of Diminishing Returns to a variable input (such as labor) assumes that

a. there is at least one fixed input.

b. all inputs are changed by the same percentage.

c. the firm is operating in the short run.

d. all inputs are held constant.

e. a and c.

3. An isoquant curve identifies

a. the maximum output possible, given a fixed budget.

b. the different combinations of goods the can be produced, given fixed amounts of inputs.

c. the different combinations of inputs that can be used to produce a fixed rate of output.

d. none of the above.

4. The ratio of total productivity to the total quantity of a variable input being used in production is

a. equal to marginal physical productivity of the input.

b. constant as employment levels of the input vary.

c. equal to average physical productivity of the input.

d. equal to the marginal rate of technical substitution.

THERE ARE ANSWERS TO THIS QUESTION ON THE INTERNET, PLEASE DO NOT COPY AND PASTE IT HERE!!

A firm chooses its output level, QS, through the choice of inputs.The relationship between inputs and outputs is determined by the production technology used by the firm, but the general relationship assumed to be positive. That is, as you increase the level of inputs (like labor and materials), output will increase.

But it is also generally assumed that there are diminishing returns to any input. Why are there diminishing returns to any input?

What is the explanation for this phenomenon?

Please give me an example that demonstrates the principle of diminishing returns of inputs.

ECON 2000 Chapter : Chapter 10

Document Summary

Get access

Related Documents

ECON 2000 Chapter : Econ

ECON 2000 Chapter : ECONChapter 10, 16, 18

ECON 2000 Chapter : Chapter 10 Input Markets

Related Questions