1- Fully explain the difference between the factor market (resource market) and the product market.

2- Practice- Assume that you and your cousin start a business selling belt buckles. The price of a belt buckle is $6 and the minimum wage is $10. Complete the table and answer the questions.

Copy the table below and complete in the answer box available to you.

Units of Labor (L)	Total Product (Q)	Marginal Product (MP)	Product Price (P)	Total Revenue (TR)	Marginal Revenue Product (MRP)	Marginal Resource Cost (MRC)
0	0	-	$6	$0	-	-
1	4		$6
2		6	$6
3	14		$6
4		3	$6
5	19		$6
6		1	$6
7	20		$6

3- In this scenario, do you supply or demand labor?

4- What happened to marginal revenue product of each worker as more workers are hired? What causes this to happen?

5- How many workers should you hire to maximize profit? How can you tell?

6- Assume that your fixed costs are $20. Calculate your profit or loss. Show your work.

7- If the minimum wage increased to $25, how many workers would you hire to maximize profit?

8- Assume instead that the price of belt buckles decreased. How will that affect the MRP of your workers?

9- Other than a change in the price of belt buckles, what else could cause the MRP of your workers to change. Explain your answer.