Which of the following is not true with regard to workers who have a high value of marginal product? These workers ?
A. have skills that are in relatively scarce supply
B. produce output for which there is great demand
C. usually have little capital with which to work
D. are usually highly paid
A. Wages rise, and rental rates fall
B. Wages rise, and rental rates rise
C. Wages fall, and rental rates rise
D. Wages fall, and rental rates fall
An increase in the price of automobiles shifts the demand for autoworkers to the ?
A. left and decreases the wage
B. right and decreases the wage
C. right and increases the wage
D. left and increases the wage
A competitive profit-maximizing firm should hire workers up to the point where ?
A. the wage, the rental price of capital and the rental price of land are all equal
B. the marginal product of labor equals zero and the production function is maximized
C. the value of the marginal product of labor equals the wage
D. the marginal product of labor equals the wage
An individual firm’s demand for a factor of production ?
A. Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby red
B. Slopes downward due to the factor’s diminishing marginal product
C. slopes upward due to the factor’s increasing marginal product
D. is perfectly elastic (horizontal) if the factor market is perfectly competitive
A decrease in the supply of farm tractors will cause all but which of the following ?
A. an increase in the rental rate for tractor
B. a decrease in the rental rate of farmland
C. a decrease in the value of the marginal product of tractors
D. an increase in the wage of farm workers