65 - Income - Marginal Productivity

Since income depends on the price of the productive services a person has to sell multiplied by the quantity of those services sold a) an increase in the Marginal Productivity of a service can increase income by making the service more desirable. b) a decrease in the marginal productivity of a service can increase income by making the service rarer and more desirable. c) the price of other productive services is irrelevant in determining one person's income. d) changes in the productivity of other services have no significant influence on the income of owners of still another. e) none of the above

67 - Input

the amount of a given input demanded by firm depends on the a) price of the finished good b) prices of all other inputs c) price of the input d) state of technology e) all of the above

70- Price for factors of production

The Price for a factor of production is determined by: a) the intersection of the Marginal Revenue Product curve of the factor and the supply curve of the factor b) the elasticity of the supply curve of that factor c) the average marginal revenue of the factor d) all of the above e) none of the above

71 - the demands for factors of production

The demands for factors of production are ultimately determined by: a) each factor's marginal product b) the demand for final consumer goods c) the state of technology d) relative income distributions e) none of the above I say E - none of the above but then I think it could be B - the demand for final consumer goods. What do you think and why? Thanks.

Case Study Questions

Bonco, Incorporated: A Firm in Transition Bonco, Incorporated, produces a patented surgical device known as the incis-a-matic. The device has been sold successfully in the U.S. market, but it has been produced in two of the company's outdated plants, in Columbus, Ohio, and in Cincinnati, Ohio. Barry Cosgrove, a young economist, hire to assist management in making decisions regarding the future of the incis-a-matic production and marketing strategies, has been developing cost and revenue data relevant to next year's operations. His boss, Mary Thompson, has argued that for the next year, the company should plan to duplicate this year's annual output of 2,400 units and raise price fro... click for more