Can someone please help me with the following questions? thanks a lot
1. The cranberry market is perfectly competitive. Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries. As time passes, the supply of cranberries will increase, so that the price of cranberries ____ and the firms' economic ____.
A.falls; profit will be eliminated
B.rises still higher; loss will be eliminated
C.rises still higher; profit will not change
D.falls; loss will be increased
2. During the winter, theme parks in Orlando often close at dusk even though they have much later closing times during the summer. The early closing times during the winter is because during that season the marginal revenue from staying open later is ____ the marginal cost.
a.greater than
b.less than
c.equal to
d.zero compared to
3. If steel workers obtain a substantial wage increase, employment in the steel industry will be likely to fall the most if
a.the demand curve for steel is highly inelastic.
b.the demand curve for steel is highly elastic.
c.the demand curve for steel workers is highly inelastic.
d.there are no good substitutes for steel.
4. Generally, the supply of a resource in the short run will be
a.more elastic than in the long run.
b.less elastic than in the long run.
c.equally elastic as the supply of the resource in the long run.
d.directly related to the elasticity of demand for the product that the resource helps produce.
5. (I)A firm should continue to hire workers until the marginal revenue product (MRP) is equal to the wage rate.
(II)The marginal revenue product (MRP) of a resource will rise as employment expands.
Which Of Followingbis is correct
Which Of Following is correct
The Marginal Product of Labor begins to diminish of which worker
Sure! Let's go through each question and explain how to find the answer.
1. The question asks what will happen to the price of cranberries and the firms' economic profit in the perfectly competitive cranberry market over time. To answer this, we need to understand the relationship between supply, demand, and price in a perfectly competitive market. When demand for cranberries increases permanently, their price will initially jump up due to the increased demand. However, as time passes, the supply of cranberries will also increase. In a perfectly competitive market, an increase in supply will put downward pressure on prices. Therefore, the correct answer is D. Falls; loss will be increased. The price will fall due to the increase in supply and the firms' economic profit will decrease, potentially leading to a loss.
2. The question asks why theme parks in Orlando often close at dusk during the winter, despite having later closing times in the summer. To answer this, we need to consider the concept of marginal revenue and marginal cost. Marginal revenue is the additional revenue a firm earns by producing and selling one extra unit, while marginal cost is the additional cost incurred by producing one extra unit. If the marginal revenue from staying open later during the winter is less than the marginal cost, it would not be profitable for the theme parks to stay open. Therefore, the correct answer is B. Less than.
3. The question asks which scenario would lead to the most significant fall in employment in the steel industry if steel workers obtain a substantial wage increase. To answer this, we need to consider the concept of demand elasticity. If the demand for steel is highly elastic, it means that consumers are very responsive to changes in price and are likely to reduce their demand significantly if prices increase. As a result, the steel industry would need to reduce its production and employment. Therefore, the correct answer is B. The demand curve for steel is highly elastic.
4. The question asks about the elasticity of supply in the short run compared to the long run. In the short run, the supply of a resource is less elastic because there are limited options and time to adjust production. For example, if more labor is needed, it may be difficult to find and hire additional workers immediately. In the long run, however, firms have more flexibility to adjust their production and resources, making the supply more elastic. Therefore, the correct answer is B. Less elastic than in the long run.
5. This question presents two statements (I) and (II) about the hiring of workers and the marginal revenue product (MRP) of a resource. To evaluate the statements, we need to understand the concept of MRP. MRP is the additional revenue a firm generates by employing one more unit of a resource (such as labor). Statement (I) suggests that a firm should hire workers until the MRP is equal to the wage rate. This statement is generally true because firms aim to maximize their profits, and when the MRP equals the wage rate, they have achieved the optimal level of resource allocation. Statement (II) suggests that the MRP of a resource rises as employment expands. This statement is not always true because the MRP of a resource can decrease as more units of that resource are employed due to diminishing marginal returns. Therefore, only Statement (I) is correct.