Thursday, April 1 & Wednesday, April 7, 2010
The Demand for Resources
Students shall be able to
- Present four major reasons for studying resource pricing.
- Explain the concept of derived demand as it applies to resource demand.
- Explain marginal-revenue product and marginal-resource cost.
- Determine the marginal-revenue-product schedule for an input when given appropriate data.
- State the principle employed by a profit-maximizing firm to determine how much of a resource it will employ.
- Apply the MRC = MRP principle to find the quantity of a resource a firm will employ when given the necessary data.
- Explain why the MRP schedule of a resource is the firm's demand schedule for the resource in competitive resource markets.
- List three factors that would change a firm's resource demand, and predict the effect of a change in each of these factors on the demand for the resource.
- 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 the resource.
- State the rule for determining the least-cost combination of resources.
- Find the least-cost combination of resources when given appropriate data.
- State the rule used by a profit-maximizing firm to determine how much of each of several resources to employ.
- When given necessary data, find the quantities of two or more resources a profit-maximizing firm will hire.
- Explain the marginal productivity theory of income distribution and present two criticisms of it.
Students shall complete activities 50-54 from the National Council on Economic Education's Advanced Placement Economics curriculum.
Complete activities 50-54 from the National Council on Economic Education's Advanced Placement Economics curriculum.
Read chapter 28 in McConnell & Brue.
Monitor and adjust as necessary.