Factor Markets

What is the rule to profit maximize when hiring workers?

• MR = MC

• MRC = MRS

• MRP = MRC

• S = D

What 2 P things increase demand for workers?

• Increase in productivity of workers

• Increase in the Wages of Workers

• Increase in Price of the Product Produced

• Decrease in Demand for the product produced

What is the shape of the Supply curve for workers in a p.C. Firm?

• horizontal

• perfectly horizontal

• Vertical

• Downward sloping

What is MRC?

• Marginal Revenue Cost

• Marginal Resource Counting

• Marginal Resource Cost

• Mad, Risky, Customers

What are the 2 markets in the Circular Flow Diagram?

• Factor Market

• Product Market

• Resource Market

• All of these answers

The four factors of production are?

• Food

• Government

• Capital, like factories & equipment

• Land

Factor Markets designate

• productivity

• input

• price

• output

product markets designate

• Price

• Workers

• Output

• input

Factor Markets determine how

• Many items to produce

• many workers to hire

• Wage to be paid

• Price to charge for products

Land, Labor, Capital, and Entrepreneurs are compensated by

• Products & Rebates

• Profit & rent

• interest & Stocks

• Interest & wages