CH 9

Question 1

Marginal Revenue Product

Answer 1

The amount that an additional unit of a factor adds to a firm’s total revenue during a period

Question 2

Complementary FOP

Answer 2

Factors of production for which an increase in use of one increases demand for the other

Question 3

Substitute FOP

Answer 3

Factors of production for which an increase in the use of one decreases the demand for the other

Question 4

What shifts demand curve of labor? (4)

Answer 4

Related FOP, technology, product demand, the number of firms

Question 5

Derived demand

Answer 5

Demand for a product that is derived from demand for factors used in its production

Question 6

What shifts labor supply? (6)

Answer 6

Change in preferences, income, prices of related goods, population, expectations, labor supply in specific markets

Question 7

MRP = _

Answer 7

MP (marginal product) x MR (marginal revenue)

Question 8

Marginal Product of Labor

Answer 8

The amount by which output rises with an additional unit of labor