Question 1) Write down four main reasons for studying resource pricing.
Question 2) Describe the concept of derived demand as it applies to resource demand.
Question 3) Explain the marginal-revenue-product schedule for the input when given suitable data.
Question 4) Define the principle employed by the profit maximizing firm in determining how much of a resource it will employ.
Question 5) Apply MRC = MRP principle to determine the quantity of a resource a firm will employ when given the essential data.
Question 6) Describe why the MRP schedule of the resource is the firm’s demand schedule for the resource in a purely competitive product market.
Question 7) Describe why the resource demand curve is downward sloping when a firm is selling output in a purely competitive product market; an imperfectly competitive product market.
Question 8) Write down the three determinants of demand for a resource and describe how a change in each of the determinants would affect the demand for the resource.
Question 9) List four determinants of the price elasticity of demand for a resource, and state how changes in each would affect the elasticity of demand for a resource.
Question 10) Mention the rule for determining the least cost combination of resources.
Question 11) Determine the least cost combination of resources when given appropriate data.
Question 12) Mention the rule used by the profit maximizing firm to find out how much of each of several resources to employ.
Question 13) When given essential data, determine the quantities of two or more resources a profit maximizing firm will hire.
Question 14) Describe the marginal productivity theory of income distribution and present two criticisms of it.