15. MICRO-CH-18

The most important factors of production are

• money, stocks, and bonds

• water, earth, and knowledge

• management, finance, and marketing

• labor, land, and capital

If a factor exhibits diminishing marginal product, hiring additional units of the factor will

• generate ever smaller amounts of output

• cause a reduction in output

• have no effect on output

• increase the marginal product of the factor

What is the marginal product of labor as the firm moves from using three workers to using four workers?

• 0

• 2

• 12

• 14

• None of the answers is correct.

If the price of output is $4 per unit, what is the value of the marginal product of labor as the firm moves from using four workers to using five workers?

• $4

• $8

• $12

• $56

• $60

If this profit-maximizing firm sells its output in a competitive market for $3 per unit and hires labor in a competitive market for $8 per hour, then this firm should hire

• one worker

• two workers

• three workers

• four workers

• five workers

The value of the marginal product of labor is

• the price of the output times the wage of labor.

• the wage of labor times the quantity of labor.

• the price of the output times the marginal product of labor.

• the wage of labor times the marginal product of labor.

• None of the answers is correct.

For a competitive, profit-maximizing firm, the value-of-the-marginal-product curve for capital is the firm's

• production function

• marginal-cost curve

• supply curve of capital

• demand curve for capital

An increase in the supply of labor

• increases the value of the marginal product of labor and increases the wage

• decreases the value of the marginal product of labor and decreases the wage

• increases the value of the marginal product of labor and decreases the wage

• decreases the value of the marginal product of labor and increases the wage

A decrease in the demand for fish

• decreases the value of the marginal product of fishermen, reduces their wage, and reduces employment in the fishing industry

• increases the value of the marginal product of fishermen, increases their wage, and increases employment in the fishing industry

• decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry

• increases the value of the marginal product of fishermen, increases their wage, and decreases employment in the fishing industry

What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry?

• increase the demand for fishing boats and increase rental rates on fishing boats

• decrease the demand for fishing boats and decrease rental rates on fishing boats

• increase the demand for fishing boats and decrease rental rates on fishing boats

• decrease the demand for fishing boats and increase rental rates on fishing boats