Please provide detailed and elaborate responses to the following questions. Your responses should be a minimum of 1 to 2 paragraphs and should include examples from the reading assignments or personal experience, if possible.
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
Directions: Please complete the following problems and show your work, if applicable.
(a) Fill in the below Table.
Units of Labor Output Marginal Physical Product Price Total Revenue Product Marginal Revenue Product
1 22 $20
2 43 19
3 63 18
4 81 17
5 96 16
6 109 15
7 119 14
8 127 13
(b) Is the firm a perfect or an imperfect competitor? Explain.
(c) If the wage rate were $220, how many workers would be hired? How much would the total wage bill come to?
(d) 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
Directions: Some say history tends to repeat itself and some disagree with that theory. Consider the development of the United States economy as it has grown since the 19th Century. Do you agree with the theory that history repeats itself? In a 5-page minimum APA formatted paper, evaluate your thoughts on whether you feel history repeats itself.
You will be expected to include real-world examples to back up your analysis. You may include topics such as the Great Depression, World Wars, and various decades to give merit to your response.
There is not a right or wrong answer to this assignment as you are describing which theory you agree with. Just be sure to thoroughly back up your topic with the use of solid examples. Wikipedia will not be counted as a valid reference for this paper.
Your paper must follow APA format with a title and reference page (not included in the page count) double-spaced and indented paragraphs, and proper in-text citations.
Note: You may utilize LIRN to help you locate resources. Please visit the Academic Resource Center for guidelines on using LIRN and APA format.