Please recall how TP, MP and AP are plotted
|
|
|
- Blake McDowell
- 6 years ago
- Views:
Transcription
1
2 Please recall how TP, MP and AP are plotted
3 The Marginal Revenue Product (MRP) The increase in total revenue for every additional labor unit employed. Units of Labor TP MP Product Price TR MRP ( TR/ L) VMP (MP x P) PERFECTLY COMPETITIVE MARKET MRP declines because of DIMINISHING MARGINAL PRODUCT
4 The Marginal Wage Cost (MWC) The increase in total wage cost resulting from the employment of one more labor unit. Units of Labor TP MP Product Price TR MRP ( TR/ L) VMP (MP x P) RECALL: VMP = w the marginal gain from hiring an additional worker equals the cost of that hire VMP = MRP rule: MRP = MWC MWC = w Thus, the short run labor demand curve was derived from VMP and MRP curve
5 The Equality of VMP and MRP in Perfectly Competitive Markets Since in PC markets, price is constant, thus P = MR MRP (MR x MP) the extra revenue to the firm from employing an additional unit of labor = VMP (P x MP) the social value of the extra unit of output Units of Labor TP MP Product Price TR MRP ( TR/ L) VMP (MP x P)
6 Short Run Labor Demand: Imperfectly Competitive Markets Units of Labor TP MP Product Price TR MRP VMP Has some degree of monopolistic/market power RECALL IN MICROECONOMICS: In IC markets, P is not equal to MR, thus, MR < P, thus, MRP < VMP MRP declines because of DIMINISHING MARGINAL PRODUCT and PRICE DECLINES AS OUTPUT INCREASES
7 Short Run Labor Demand: Imperfectly Competitive Markets Units of Labor TP MP Product Price TR MRP VMP Notice the value of the added output from society s perspective. (VMP) But the MRP of the 5 th worker is only Why is there a 3.00 difference? To sell the 1, There must be a 0.0 cut = 8.80 (15 x 0.0)
8 Plot the short run labor demand curve for the imperfectly competitive seller using the MRP = W rule IC firm restricts output in the market because it will be more profitable to produce less output, thus, will employ less workers. Therefore, IC firm will be less responsive to wage rate changes than a PC seller. NOTE: VMP is not equal to MRP thus, (MRP = MR x MP) < (VMP = P x MP)
9 Long Run Labor Demand q = f ( E, K) Schedule or curve indicating the amount of labor that firms employ at each possible wage rate when both labor and capital are variable
10 Output Effect or Scale Effect Change in employment resulting solely from the effect of a wage change on the employer s cost of production. Illustrate the effect of a decline in wage rate using Marginal Cost curve and Marginal Revenue curve of a PC firm.
11 Substitution Effect Change in the employment resulting solely from a change in the relative price of labor, output being held constant. A firm responds to a wage decline by substituting the relatively less expensive labor for some types of capital. Thus, long run demand for labor is more elastic than short run.
12 Combined Effects A wage decline will result to: An Output Effect Q to Q (short run) A Substitution Effect - Q to Q (long run)
13 Isoquant-Isocost Analysis of Long Run Labor Demand Isoquant Downward slope Convexity to the origin (MRTS= K/ L) Higher output to the northeast Isocost Plabor/Pcapital Least cost combination of K and L MRTS = PL/PK
14 Deriving the Long Run Labor Demand Recall: I = 10 Plabor =4 Pcapital = optimal level = 15 What if price of labor increased to 1? a-b ----SE b-c ---- OE
15 Long Run Labor Demand
16 Elasticity of Labor Demand The sensitivity of the quantity of labor demanded to wage rate changes (wage elasticity coefficient) Ed = % Qd for labor / % in wage rate Elastic - >1; employers are responsive to wage changes Inelastic - <1; employers are relatively insensitive to wage changes
17 Total Wage Bill Rules Total Wage Bill = W x Qlabor RECALL effect of elasticity to TR e.g. price and demand is elastic TR Thus, if labor demand is elastic, wage will total wage bill (increases the wage bill but creates a decline in employment)
18 Seatwork ½ crosswise Determinants of elasticity: Explain how the following affect elasticity of labor demand: 1. Elasticity of product demand. Ratio of labor costs to total costs 3. Substitutability of other inputs (capital) 4. Supply elasticity of other inputs Determinants of Labor: Illustrate the effect of the following to labor demand, ceteris paribus: 1. Increase in product demand. Increase in marginal product of labor (productivity) 3. Decrease in the number of employers 4. The price of capital increased and it is a gross substitute for labor 5. The price of capital decreased and it is a gross complement of labor
6. The law of diminishing marginal returns begins to take effect at labor input level: a. 0 b. X c. Y d. Z
Chapter 5 MULTIPLE-CHOICE QUESTIONS 1. The short run is defined as a period in which: a. the firm cannot change its output level b. all inputs are variable but technology is fixed c. input prices are fixed
Demand & Supply of Resources
Resource Markets 1 Demand & Supply of Resources Resource demand Firms demand resources As long as marginal revenue exceeds marginal cost To maximize profit Resource supply People supply resources To the
UNIT 4 PRACTICE EXAM
UNIT 4 PRACTICE EXAM 1. The prices paid for resources affect A. the money incomes of households in the economy B. the allocation of resources among different firms and industries in the economy C. the
BACHELOR OF BUSINESS. Sample FINAL EXAMINATION
BACHELOR OF BUSINESS Sample FINAL EXAMINATION Subject Code : ECO201 Subject Name : LABOUR ECONOMICS This examination carries 50% of the total assessment for this subject. Examiner(s) Moderator(s) Joyce
Chapter 17: Labor Markets
Chapter 17: Labor Markets Econ 102: Introduction to Microeconomics 1 1.1 Goals of this class Goals of this class Learn how employment and wages are determined in equilibrium. Learn what can shift labor
CHAPTER 11 The Demand for Factors of Production
Part Three: Microeconomics of Factor Markets CHAPTER The Demand for Factors of Production McGraw-Hill Ryerson Ltd. Slides prepared by Bruno Fullone, George Brown College In this chapter you will learn:.
MICROECONOMICS II - REVIEW QUESTIONS I
MICROECONOMICS II - REVIEW QUESTIONS I. What is a production function? How does a long-run production function differ from a short-run production function? A production function represents how inputs are
Input Demand: The Labor and Land Markets
Chapter 10 Input Demand: The Labor Prepared by: Fernando & Yvonn Quijano 2007 Prentice Hall Business Publishing Principles of Economics 8e by Case and Fair Input Demand: The Labor 1 2 10 Chapter Outline
Review Notes for Chapter Optimal decision making by anyone Engage in an activity up to the point where the marginal benefit= marginal cost
Review Notes for Chapter 5 1. Optimal decision making by anyone Engage in an activity up to the point where the marginal benefit= marginal cost Sunk costs are costs which must be borne regardless of future
MICRO EXAM REVIEW SHEET
MICRO EXAM REVIEW SHEET 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry 3. Natural Monopoly with Fair-Return
Micro Semester Review Name:
Micro Semester Review Name: The following review is set up to emphasize certain concepts, graphs and terms. It is the responsibility of the individual teachers to emphasize and review the analysis aspects
Topic 3.1b Long-Run Labour Demand. Professor H.J. Schuetze Economics 370
Topic 3.1b Long-Run Labour Demand Professor H.J. Schuetze Economics 370 Long-Run Labour Demand In the long-run the firm can now vary both inputs and. Typically the firms production and employment decisions
CASE FAIR OSTER PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N. PEARSON 2014 Pearson Education, Inc. Publishing as Prentice Hall
PRINCIPLES OF MICROECONOMICS E L E V E N T H E D I T I O N CASE FAIR OSTER PEARSON Publishing as Prentice Hall Prepared by: Fernando Quijano w/shelly Tefft 2 of 23 Input Demand: The Labor and Land Markets
Application: the effect of immigration on domestic wages
LABOUR DEMAND Application: the effect of igration on domestic wages Case 1. Immigrants and nonigrants are perfect substitutes in production W S 0 S 1 Law of one price: all workers earn the same wage W
Lesson 1: What is Supply? Lesson 2: The Theory of Production Lesson 3: Cost, Revenue, and Profit Maximization
Lesson 1: What is Supply? Lesson 2: The Theory of Production Lesson 3: Cost, Revenue, and Profit Maximization 1 5 Supply BIG IDEAS = Responsibility, Choices, Changes, and Relationships Essential Questions:
Choose the one alternative that BEST completes the statement or answers the question.
CHAPTER 3 The Demand for Labor In addition to the multiple choice and quantitative problems listed here, you should answer review questions 1, 3, 5, and 7 and problems 1-4 at the end of chapter 3. Multiple-Choice
AP Microeconomics Review With Answers
AP Microeconomics Review With Answers 1. Firm in Perfect Competition (Long-Run Equilibrium) 2. Monopoly Industry with comparison of price & output of a Perfectly Competitive Industry (which means show
DEMAND FORECASTING (PART II)
BEC 30325: MANAGERIAL ECONOMICS Session 06 DEMAND FORECASTING (PART II) Dr. Sumudu Perera Session Outline 2 Smoothing Techniques- Example- Moving Average Limitations of Qualitative Demand Forecasting Limitations
Final Term Examination Spring 2006 Time Allowed: 150 Minutes. Question No. 1 Marks :1. Question No.
www.vustuff.com WWW.VUTUBE.EDU.PK ECO402 Microeconomic s Final Term Examination Spring 2006 Time Allowed: 150 Minutes Question No. 1 Marks :1 Economies of scale and economies of scope are synonymous. Question
Econ190 May 1, No baseball caps are allowed (turn it backwards if you have one on).
Heather Krull Final Exam Econ190 May 1, 2006 Name: Instructions: 1. Write your name above. 2. No baseball caps are allowed (turn it backwards if you have one on). 3. Write your answers in the space provided
Microeconomics. Use the graph below to answer question number 3
More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *
Microeconomics. Use the graph below to answer question number 3
More Tutorial at Microeconomics 1. Opportunity costs are the values of the: a. minimal budgets of families on welfare b. hidden charges passed on to consumers c. monetary costs of goods and services *
Utility Theory and the Downward Sloping Demand Curve.
Tuesday Notes Utility Theory and the Downward Sloping Demand Curve. Five fundamentals of consumer choice 1. We make decisions purposefully and We are motivated and act based on rational self-interest.
1.3. Levels and Rates of Change Levels: example, wages and income versus Rates: example, inflation and growth Example: Box 1.3
1 Chapter 1 1.1. Scarcity, Choice, Opportunity Cost Definition of Economics: Resources versus Wants Wants: more and better unlimited Versus Needs: essential limited Versus Demand: ability to pay + want
Total Costs. TC = TFC + TVC TFC = Fixed Costs. TVC = Variable Costs. Constant costs paid regardless of production
AP Microeconomics Total Costs TC = TFC + TVC TFC = Fixed Costs Constant costs paid regardless of production TVC = Variable Costs Costs that vary as production is changed Cost TFC TVC TFC Output Profit
Introduction to Business (Managerial) Economics
Contents Unit 1 Introduction to Business (Managerial) Economics Meaning of Managerial Economics... 2 Definitions of Managerial Economics... 2 Features (Characteristics) of Managerial Economics... 5 Nature
Labour Demand Lecturer: Dr. Priscilla T. Baffour
Lecture 3 Labour Demand Lecturer: Dr. Priscilla T. Baffour Determinants of Short Run Demand for Labour The wage rate: The wage rate is a very important determinant of labour demand. Thus the higher the
The Behavior of Firms
Chapter 5 The Behavior of Firms This chapter focuses on how producers make decisions regarding supply. Individuals demand goods and services. Firms supply goods and services. An important assumption is
1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price
1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. Quantity demanded vs demand: quantity demanded is
2000 AP Microeconomics Exam Answers
2000 AP Microeconomics Exam Answers 1. B Scarcity is the main economic problem!!! 2. D If the wages of farm workers and movie theater employee increase, the supply of popcorn and movies will decrease (shift
Answer all the following questions:-
Answer all the following questions:- QUESTION ONE / TRUE ( ) OR FALSE (X) / (10 MARKS) 1. Total revenue = price x sold quantity. 2. The purpose of a production function is to tell us just how much output
Practice Exam 3: S201 Walker Fall with answers to MC
Practice Exam 3: S201 Walker Fall 2007 - with answers to MC Print Your Name: I. Multiple Choice (3 points each) 1. If marginal utility is falling then A. total utility must be falling. B. marginal utility
Question Paper Business Economics I (MB1B3): January 2009
Question Paper Business Economics I (MB1B3): January 2009 Answer all 78 questions. Marks are indicated against each question. 1. Which of the following is not responsible for an increase in demand for
Last Name First Name ID#
Last Name First Name ID# ---Form A Prof. Harford Price Theory I Section 3, Spring 2003 Second Test, Form A 1. If prices don t all change at the same rate, the consumer price index that calculates what
1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price
1. Demand: willingness to buy a good or service and the ability to pay for it; how much of an item an individual is willing to purchase at each price 2. The two things needed for demand to exist are: willingness
Labor Demand. Rongsheng Tang. July, Washington U. in St. Louis. Rongsheng Tang (Washington U. in St. Louis) Labor Demand July, / 53
Labor Demand Rongsheng Tang Washington U. in St. Louis July, 2016 Rongsheng Tang (Washington U. in St. Louis) Labor Demand July, 2016 1 / 53 Overview The production function The employment decision in
Factors of Prodution. Unit 3: The Nature and Function of Factor Markets
Factors of Prodution Unit 3: The Nature and Function of Factor Markets 4 Factors of Production Labor Capital Land Entrepreneurship Factor Markets Factors of production (labor, capital, and land) are paid
Unit V: Factor Markets. Problem Set #5 Points Distribution
Unit V: Factor Markets Problem Set #5 Points Distribution Question #1 Real World Application of Key Concepts 5 Points EACH 2 Points Definition 3 Points Clear Example 1. Derived Demand Definition (2 points):
Monopoly. 3 Microeconomics LESSON 5. Introduction and Description. Time Required. Materials
LESSON 5 Monopoly Introduction and Description Lesson 5 extends the theory of the firm to the model of a Students will see that the profit-maximization rules for the monopoly are the same as they were
ECON Chapter 5 - Labour Economics. Maggie Jones
ECON 370 - Chapter 5 - Labour Economics Maggie Jones Demand for Labour in Competitive Labour Markets Demand for Labour in Competitive Labour Markets The principles that determine the demand for any factor
Contents. Introduction
Contents Chapter 1 Introduction Introduction to Economics... 1 Meaning of Economics... 1 Definitions of Economics... 2 Introduction to Economic Theory... 3 The Structure of Theories... 5 Importance of
****** 1. How is the demand for an input dependent upon the demand for an output? 2. Given a wage, how does a firm decide how many people to hire?
1 Chapter 4- Income distribution and factor pricing Syllabus-Input markets: demand for inputs; labour markets, land markets, profit maximisation condition in input markets, input demand curves, distribution
MICRO FINAL EXAM Study Guide
AP MICROECONOMICS-217 Name: MICRO FINAL EXAM Study Guide Instructions: Please fight senioritis! Study & be efficient with your time. DUE: Friday April 28 th (Multiple choice block 4/26 th or 27 th Free
Chapter 14. Chapter Outline
Chapter 14 Labor Chapter Outline A Perfectly Competitive Firm s Demand for Labor Market Demand Curve for Labor An Imperfect Competitor s Demand for Labor Labor Supply Market Supply Curve Monopsony Minimum
Chapter Outline McGraw Hill Education. All Rights Reserved.
Chapter 14 Labor Chapter Outline A Perfectly Competitive Firm s Demand for Labor Market Demand Curve for Labor An Imperfect Competitor s Demand for Labor Labor Supply Market Supply Curve Monopsony Minimum
SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME
All Rights Reserved No. of Pages - 07 No of Questions - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR I SEMESTER I INTAKE VIII (GROUP B) END SEMESTER
Faculty of Economics, Thammasat University EE 211 Principles of Microeconomics (3 credits)
Faculty of Economics, Thammasat University EE 211 Principles of Microeconomics (3 credits) Semester 1/2014 ----------------------------------------------------------------------------------------------
Chapter 6. Firms and Production. Hard work never killed anybody, but why take a chance? Charlie McCarthy
Chapter 6 Firms and Production Hard work never killed anybody, but why take a chance? Charlie McCarthy Chapter 6 Outline 6.1 The Ownership and Management of Firms 6.2 Production 6.3 Short Run Production:
Ecn Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman. Final Exam
Ecn 100 - Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman Final Exam You have until 12:30 to complete this exam. Be certain to put your name, id number
Faculty of Economics, Thammasat University EE 211 Principles of Microeconomics (3 credits)
Lecture Time: Lecture Venue: Instructor: Faculty of Economics, Thammasat University EE 211 Principles of Microeconomics (3 credits) Semester 1/2015 ----------------------------------------------------------------------------------------------
FINALTERM EXAMINATION FALL 2006
FINALTERM EXAMINATION FALL 2006 QUESTION NO: 1 (MARKS: 1) - PLEASE CHOOSE ONE Compared to the equilibrium price and quantity sold in a competitive market, a monopolist Will charge a price and sell a quantity.
Econ 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1
Econ 300: Intermediate Microeconomics, Spring 2014 Final Exam Study Guide 1 Chronological order of topics covered in class (to the best of my memory). Introduction to Microeconomics (Chapter 1) What is
Theory of Production
Theory of Production Production Inputs: Labour, Capital Production: The Firm Outputs: Goods THE THEORY OF PRODUCTION Production theory forms the foundation for the theory of supply Managerial decision
AP Microeconomics: Test 2 Study Guide
AP Microeconomics: Test 2 Study Guide Mr. Warkentin nwarkentin@wyomingseminary.org 203 Sprague Hall 2017-2018 Academic Year Directions: The purpose of this sheet is to quickly capture the topics and skills
Chapter 4. Labour Demand. McGraw-Hill/Irwin Labor Economics, 4 th edition. Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 4 Labour Demand McGraw-Hill/Irwin Labor Economics, 4 th edition Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved. 4-2 Introduction Firms hire workers because consumers want to
CHAPTER 2: DEMAND AND SUPPLY
CHAPTER 2: DEMAND AND SUPPLY CIA4U Ms. Schirk 2.3 THE MARKET A market can be: A physical place where goods are bought and sold A collective reference to all the buyers and sellers of a particular good
CHAPTER 2: DEMAND AND SUPPLY
2.3 THE MARKET CHAPTER 2: DEMAND AND SUPPLY CIA4U Ms. Schirk A market can be: A physical place where goods are bought and sold A collective reference to all the buyers and sellers of a particular good
Unit 5: The Resource Market
February AP Microeconomics Unit : Resource Market. Resource Demand Curve Unit : The Resource Market Review. Give an example of Derived Demand.. Define MRP.. Explain the difference between MRP and MR..
i. The profit maximizing output of firm B is smaller than the profit maximizing output of firm A.
Short Questions 1. A firm is currently producing output using units of labor and units of other materials. The isoquant that corresponds to output level and the firm s optimal input choices are given in
CONTENT TOPIC 3: SUPPLY, PRODUCTION AND COST. The Supply Process. The Role of the Firm 10/10/2016
CONTENT TOPIC 3: SUPPLY, PRODUCTION AND COST - The factors of production - Combining factors of production: The law of returns - Costs of production: Short & Long Run - Deciding whether to produce in the
Microeconomics. Use the Following Graph to Answer Question 3
More Tutorial at www.dumblittledoctor.com Microeconomics 1. To an economist, a good is scarce when: *a. the amount of the good available is less than the amount that people want when the good's price equals
Module 5. Production analysis. Introduction
Module 5 Production analysis Introduction This module moves from the decisions of utility-maximising households to examine the factors governing the behaviour of perfectly competitive profit-maximising
SEMESTER Examination Paper (COVER PAGE) Time : pm Reading Time : Nil
ECO 112 / Page 1 of 1 Session : August 2002 SEMESTER Examination Paper (COVER PAGE) Programme : Cambridge A-Level Programme Course : ECO 112 : Economics 2 Date of Examination : October 28, 2002 Time :
ECO2003F. Katherine Eyal. Chapter 12. Factor Markets: Labour
ECO2003F Katherine Eyal Chapter 12 Factor Markets: abour 1 Abbreviations used in these slides. Please DON'T use them in your exam use the full versions. VMP = value marginal product of labour MRP = marginal
Markets for Factor Inputs
C H A P T E R 14 Markets for Factor Inputs Prepared by: Fernando & Yvonn Quijano CHAPTER 14 OUTLINE 14.1 Competitive Factor Markets 14.2 Equilibrium in a Competitive Factor Market 14.3 Factor Markets with
SRI LANKA INSTITUTE OF ADVANCED TECHNOLOGICAL EDUCATION. (Established in the Ministry of Higher Education, vide in Act No.
Q1. Select the correct answer and Under line it (Total 16 Marks) 01. Economics is a science. Because, (a) Evidences are observable (b) Findings are measurable (c) Findings can be analyzed i a and b correct
Using Elasticity to Predict Cost Incidence. A Definition & A Question. Who pays when payroll tax added to wage rate?
Using Elasticity to Predict Cost Incidence A Definition & A Question Definition of Incidence: the fact of falling upon; in this case, where costs fall A Question for you what does a statement like this
Using this information, we then write the output of a firm as
Economists typically assume that firms or a firm s owners try to maximize their profit. et R be revenues of the firm, and C be the cost of production, then a firm s profit can be represented as follows,
Managerial Economics & Business Strategy. Final Exam Section 2 May 11 th 7:30 am-10:00 am HH 076
Managerial Economics & Business Strategy Final Exam Section 2 May 11 th 7:30 am-10:00 am HH 076 Grading Scale 5% - Attendance 8% - Homework (Drop the lowest grade) 7% - Quizzes (Drop the lowest grade)
CIE Economics A-level
CIE Economics A-level Topic 3: Government Microeconomic Intervention c) Labour market forces and government intervention Notes Demand for and supply of labour The labour market is a factor market. The
January Examinations 2015
January Examinations 2015 DO NOT OPEN THE QUESTION PAPER UNTIL INS TRUCTED TO DO SO BY THE CHIEF INVIGILATOR Department Module Code Module Title Exam Duration (in words) ECONOMICS EC2000 INTERMEDIATE MICROECONOMICS
Chapter 3. Labour Demand. Introduction. purchase a variety of goods and services.
Chapter 3 Labour Demand McGraw-Hill/Irwin Labor Economics, 4 th edition Copyright 2008 The McGraw-Hill Companies, Inc. All rights reserved. 4-2 Introduction Firms hire workers because consumers want to
Final Exam - Solutions
Ecn 100 - Intermediate Microeconomics University of California - Davis December 7, 2010 Instructor: John Parman Final Exam - Solutions You have until 12:30 to complete this exam. Be certain to put your
Pledge (sign) I did not copy another student s answers
Economics 4020 Dr. Rupp Test #1 Fri. Sept 23 rd, 2011 20 Multiple Choice questions (2.5 points each) Pledge (sign) I did not copy another student s answers 1. The profit maximization rule for a firm is
Economics MCQ (1-50) GAT Subject Management Sciences.
Economics MCQ (1-50) GAT Subject Management Sciences www.accountancyknowledge.com 51. If a 5% increase in price causes no change in total revenue, this means? (a) Demand is price inelastic (b) Demand is
AP Microeconomics [last name, first name] Pre-Test
![AP Microeconomics [last name, first name] Pre-Test](/thumbs/95/123047287.jpg "AP Microeconomics [last name, first name] Pre-Test")
AP Microeconomics [last name, first name] Pre-Test Directions: Use pencil only to answer the following questions. Return your completed pre-test on the first day of class. READING GRAPHS 1: Refer to the
INTRODUCTION. Two uses of price theory: 1. Descriptive (Positive Theory) 2. Prescriptive (Normative Theory)
INTRODUCTION This course covers the field of microeconomics. Microeconomics addresses individual behavior in markets and the interrelationships between markets. This is quite different from macroeconomics,
ECO 162: MICROECONOMICS
ECO 162: MICROECONOMICS PREPARED BY Dr. V.G.R. CHANDRAN Email: vgrchan@gmail.com Website: www.vgrchandran.com/default.html UNIVERSITI TEKNOLOGI MARA 0 P a g e TUTORIAL QUESTIONS ALL RIGHTS RESERVED 2010
Chapter 28 The Labor Market: Demand, Supply, and Outsourcing
Chapter 28 The Labor Market: Demand, Supply, and Outsourcing Learning Objectives After you have studied this chapter, you should be able to 1. define marginal factor cost, marginal physical product of
Midterm 2 - Solutions
Ecn 100 - Intermediate Microeconomic Theory University of California - Davis November 13, 2009 Instructor: John Parman Midterm 2 - Solutions You have until 11:50am to complete this exam. Be certain to
Unit 5. Producer theory: revenues and costs
Unit 5. Producer theory: revenues and costs Learning objectives to understand the concept of the short-run production function, describing the relationship between the quantity of inputs and the quantity
The Theory of Production
The Theory of Production Production: the creation of any good or service that has economic value to either consumers or other producers. Production analysis focuses on the efficient use of inputs to create
Labour Demand. 1 The Simple Model of Labour Demand. 2 De nitions (refreshing your memory) 3 Labour Demand in the Short Run.
Labour Demand Lecture notes Dan Anderberg Royal Holloway College January 2003 1 The Simple Model of Labour Demand Question: Where does labour demand come from? ² Labour demand is a DERIVED DEMAND: rms
Cost-minimizing input combinations. Rush October 2014
Cost-minimizing input combinations Rush October 2014 Today s objectives Review marginal revenue productivity and firm resource demand Look at the optimal combination of resources for the competitive firm
Elasticity and Its Application
Elasticity and Its Application Elasticity... is a measure of how much buyers and sellers respond to changes in market conditions allows us to analyze supply and demand with greater precision. Journal Question-Name
AP Microeconomics. Sample Student Responses and Scoring Commentary. Inside: Free Response Question 2. Scoring Guideline.
2017 AP Microeconomics Sample Student Responses and Scoring Commentary Inside: Free Response Question 2 Scoring Guideline Student Samples Scoring Commentary 2017 The College Board. College Board, Advanced
Chapter. Elasticity. Prepared by: Fernando & Yvonn Quijano Prentice Hall Business Publishing Principles of Economics 8e by Case and Fair
Chapter 5 Elasticity Prepared by: Fernando & Yvonn Quijano 2007 Prentice Hall Business Publishing Principles of Economics 8e by Case and Fair Elasticity 5 Chapter Outline Price Elasticity of Demand Slope
The Market Forces of Supply and Demand
Theory of the Firm The Market Forces of Supply and Demand Supply and demand are the two words that economists use most often Supply and demand are the forces that make market economies work. Modern microeconomics
Microeconomics: MIE1102
TEXT CHAPTERS TOPICS 1, 2 ECONOMICS, ECONOMIC SYSTEMS, MARKET ECONOMY 3 DEMAND AND SUPPLY. MARKET EQUILIBRIUM 4 ELASTICITY OF DEMAND AND SUPPLY 5 DEMAND & CONSUMER BEHAVIOR 6 PRODUCTION FUNCTION 7 COSTS
Final Exam - Solutions
Ecn 00 - Intermediate Microeconomic Theory University of California - Davis September 9, 009 Instructor: John Parman Final Exam - Solutions You have until :50pm to complete this exam. Be certain to put
2) A production method that relies on large quantities of labor and smaller quantities of capital equipment is referred to as a: 2)
Micro: TA Session 4, Problem set MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The main difference between a short-run production function and
DURATION: 3 HOURS TOTAL MARKS: 100. External Examiner: MR MAG Darroch Internal Examiners: Dr E Wale and Prof GF Ortmann
DURATION: 3 HOURS TOTAL MARKS: 100 External Examiner: MR MAG Darroch Internal Examiners: Dr E Wale and Prof GF Ortmann NOTE: THIS PAPER CONSISTS OF 9 PAGES. PLEASE SEE THAT YOU HAVE THEM ALL. ANSWER SECTIONS
Chapter 6 Read this chapter together with unit five in the study guide. Firms and Production
Chapter 6 Read this chapter together with unit five in the study guide Firms and Production Topics The Ownership and Management of Firms. Production. Short-Run Production: One Variable and One Fixed Input.
SUMMARY OF THE MODELS OF UNIT 4
SUMMARY OF THE MODELS OF UNIT 4 Chapter 13: Eight Labor Market Models 1. Competitive labor market in a competitive product market 2. Competitive labor market in an imperfectly competitive product market
Chapter 12 outline The shift from consumers to producers
Chapter 12 outline The shift from consumers to producers Resource markets are markets in which business firms demand factors of production from household suppliers. (As you can see the tables are now turned
Practice Exam 3: S201 Walker Fall 2009
Practice Exam 3: S201 Walker Fall 2009 I. Multiple Choice (3 points each) 1. Which of the following statements about the short-run is false? A. The marginal product of labor may increase or decrease. B.
1 of 14 5/1/2014 4:56 PM
1 of 14 5/1/2014 4:56 PM Any point on the budget constraint Gives the consumer the highest level of utility. Represent a combination of two goods that are affordable. Represents combinations of two goods
MICROECONOMICS DIAGRAMS
MICROECONOMICS DIAGRAMS 1. Abnormal Profit 5. Average Fixed Costs 2. ad valorem tax At Qpm, Ppm > Pcost All costs are covered and then some! 6. Average Product The red line diminishes, but never becomes
Chapter 1- Introduction
Chapter 1- Introduction A SIMPLE ECONOMY Central PROBLEMS OF AN ECONOMY: scarcity of resources problem of choice Every society has to decide on how to use its scarce resources. Production, exchange and
NAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Final Exam December 8, 2006
NAME: INTERMEDIATE MICROECONOMIC THEORY FALL 2006 ECONOMICS 300/012 Section I: Multiple Choice (4 points each) Identify the choice that best completes the statement or answers the question. 1. The slope