Name: 7. A contractor is employing labor and capital to build an office complex. At the current mix of inputs, the marginal product of labor is 30 square feet per day, and the marginal product of capital is 90 square feet per day. The price of labor is $1,000 per day, and the price of capital is $3,000 per day. To hire more inputs in a cost-minimizing way, the firm should a. hire more labor and less capital. d. hire less labor and less capital. b. hire less labor and more capital. e. make no changes to the mix of inputs. C. hire more labor and more capital 8. Assume a perfectly competitive labor market. Which of the following correctly describes the individual firm's demand curve for labor and the market demand curve for labor? a. Firm's Demand Curve for Labor: d. Firm's Demand Curve for Labor: Downward Sloping Horizontal Market's Demand Curve for Labor: Market's Demand Curve for Labor: Downward Sloping Horizontal b. Firm's Demand Curve for Labor: e . Firm's Demand Curve for Labor: Downward Sloping Horizontal Market's Demand Curve for Labor: Market's Demand Curve for Labor: Horizontal Upward Sloping C. Firm's Demand Curve for Labor: Horizontal Market's Demand Curve for Labor: Downward Sloping 9. The profit-maximizing firm will continue to hire workers until the marginal revenue product of labor is equal to a. maginal product of labor. . price of the good that labor is producing. b. marginal revenue product of capital. e. marginal resource cost. c. demand for labor. 10. The following questions are based on the following table below, which shows the relationship between the number of workers and coal output (in tons per day). Number of Workers Total Output of Coal 0 0 25 44 3 60 70 5 75 How many workers would the coal company want to hire if the price of coal were competitively priced at $5 per ton and the wage rate was $40 per day? a. 5 d. 2 b. 0 W A e. C