ECN 320 ECN320 Module 7 Homework Solution (AAU Online)
PART I: SHORT RESPONSE
1.As output rises, which MRP curve declines more quickly—the MRP of the perfect competitor or the MRP of the imperfect competitor? Explain your answer.
2.How is the demand for a resource affected by (a) changes in the demand for the final product and (b) productivity changes?
3.Using the substitution and output effects, explain how a decline in the price of resource A might cause an increase in the demand for substitute resource B.
4.If automatic dishwashers and human dishwashers can be substituted for one another, and if the wage rate for dishwashers rises, what happens to the demand for automatic dishwashers according to (a) the substitution effect and (b) the output effect?
PART II: PRACTICAL APPLICATION
1.Fill in the below Table.
2.Is the firm a perfect or an imperfect competitor? Explain.
3.If the wage rate were $220, how many workers would be hired? How much would the total wage bill come to?
4.If the wage rate were $100, how many workers would be hired? How much would the total wage bill come to?
PART III: JOURNAL ACTIVITY
Microeconomics Opinion Project
We Also Recommend
"Applying Skills Learned" Please respond to the following- From the e-Activity, explain what you learned about the Website you selected
(TCO 3) Managers are often required to make decisions about the future based