CAPE Economics Unit 1 · 2011 · Paper 2 · Question 5(b)(i)
Define wage rate and marginal product, and explain the importance of each to a firm.
The mark scheme is shown once you've answered.
Practise this questionOther parts of this question
- 5(a)Identify the rewards accruing to the owners of each factor of production: land, labour, capital, and enterprise.[4 marks]
- 5(b)(ii)With the aid of a diagram, explain how the wage rate and the value of marginal product of labour determine the quantity of labour hired by a firm.[10 marks]
- 5(c)Explain the relationship between the value of the marginal product of labour and the firm's labour demand curve.[5 marks]
More practice: the rest of this paper · more The Demand for and Supply of Factors questions · all CAPE Economics Unit 1 past papers