Micro 5.3 Comparing Product and Resource Markets: Econ Concepts in 60 Seconds- Review

The video tutorial compares the product and resource markets using two perfectly competitive firms. It explains the product market, focusing on price and quantity of outputs, and the resource market, focusing on wage and quantity of labor. Key concepts such as marginal revenue, marginal cost, and marginal resource cost are discussed, highlighting how firms decide on production and hiring based on these economic principles.

What is the primary focus of the product market?

• Inputs like labor

• Outputs like apples

• Consumer preferences

• Government regulations

In a perfectly competitive product market, where does a firm produce?

• Where marginal cost equals average cost

• Where demand equals supply

• Where marginal revenue equals marginal cost

• Where total revenue equals total cost

What does marginal revenue represent in the product market?

• The cost of producing one more unit

• The additional revenue from selling one more unit

• The average revenue per unit

• The total revenue from all units sold

In the resource market, what does the wage represent?

• The average cost per worker

• The total cost of all workers

• The cost of hiring one more worker

• The price of outputs

What is the marginal resource cost in the context of hiring workers?

• The additional cost of hiring one more worker

• The average cost of resources

• The additional cost of producing one more output

• The total cost of all resources