Chapter eighteen: The Markets for the Factors of Production
1. What is the concept of diminishing marginal product? Draw a basic graph showing a production function curve. What happens to the curve as the quantity of input increases?
2. Name one reason that can cause the labor-demand curve to shift. Describe what would happen to the curve in your example (which way it would shift).
3. Describe what would happen to equilibrium wage and labor supply in a country that has seen a recent influx of immigrants? What would happen to the equilibrium wage and labor supply of the country the workers immigrated from?
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