In a Classic (Or Early) Experiment to Determine How Large

question 21

Multiple Choice

In a classic (or early) experiment to determine how large the forces are that allow leaves to pull water from the soil, the rate at which water flowed from a reservoir into the cut tip of an actively transpiring plant was _____ the flow rate through the branch tip when it was subsequently attached to a vacuum pump.

• A)greater than
• B)less than
• C)equal to

Grasp the principle of derived demand in labor and resource markets.

Recognize the role of diminishing marginal productivity in determining labor demand.

Identify how resource pricing affects the allocation of resources and ultimately influences firm’s costs and profits.

Understand the impact of market structures (pure competition versus imperfect competition) on resource demand and labor hiring.

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Definitions:

Marginal Revenue

The additional revenue generated from selling one more unit of a good or service.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.

Externality

Actions of one party impose costs or benefits on a second party.

Economy of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically resulting in decreased per-unit cost as production increases.