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### **Question 7**
For a firm that has some power in the product market, the marginal revenue product of the fifth worker is $15 and the price of the last unit of output produced is $5. The firm will hire the fifth worker if the marginal product of the fifth worker is:
- **Options**:
   1. 3 units of output
   2. 45 units of output
   3. Fewer than 3 units of output
   4. Greater than 3 units of output
   5. Greater than 45 units of output

**Explanation**: 
The marginal revenue product (MRP) is calculated by multiplying the marginal product (MP) of the worker by the price of the output produced. 
\[
MRP = MP \times \text{Price of Output}
\]
From the question:
\[
15 = MP \times 5
\]
Solve for $ MP $:
\[
MP = \frac{15}{5} = 3
\]
Thus, the firm will hire the fifth worker if the marginal product of the fifth worker is **greater than 3 units of output** (answer is option 4).

---

### **Question 8**
An increase in the demand for automobiles will increase the demand for the labor used to produce the automobiles due to:
- **Options**:
   1. Increase in the marginal revenue product of labor
   2. Decrease in the marginal revenue product of labor
   3. Increase in the marginal revenue product of automobiles
   4. Decrease in the marginal revenue product of automobiles
   5. Decrease in the average revenue of labor

**Explanation**: 
The demand for labor is derived from the demand for the goods or services produced by the labor. If the demand for automobiles increases, the marginal revenue product (MRP) of labor, which depends on both the marginal product of labor and the price of automobiles, will increase. This makes the correct answer **increase in the marginal revenue product of labor** (option 1).

---

### **Question 9**
In product markets:
- **Options**:
   1. Households are the demanders and firms are the suppliers
   2. Households are the suppliers and firms are the demanders
   3. Price and quantity demanded are positively related
   4. Price and quantity supplied are inversely related
   5. Price and quantity demanded are not related

**Explanation**: 
In product markets, households typically demand goods and services, while firms supply these goods and services. This makes the correct answer **households are the demanders and firms are the suppliers** (option 1).

---

### **Question 10**
If the price of a resource falls, other things constant, the:
- **Options**:
   1. Demand for the final product produced by the resource will decrease
   2. Demand for a substitute product will increase
   3. Demand for the resource will fall
   4. Demand for the resource will increase

**Explanation**: 
When the price of a resource falls, producers can afford to purchase more of it, leading to an increase in demand for that resource. Thus, the correct answer is **demand for the resource will increase** (option 4).

---

Would you like further details or explanations for any of these? Here are 5 additional questions to deepen your understanding:

1. What are some factors that can affect the marginal revenue product of labor?
2. How does market power influence a firm's hiring decisions?
3. What is the relationship between supply and demand in labor markets?
4. Can you explain the difference between marginal product and marginal revenue product?
5. How does a change in the price of resources affect production costs and supply?

**Tip**: In economics, marginal analysis (the additional benefits vs. the additional costs) is crucial for understanding decision-making at the margin, whether for firms or individuals.

Explore key concepts in economics, including marginal revenue product, the derived demand for labor, and price-quantity relationships in product markets. This resource provides a step-by-step breakdown of questions related to firm behavior and resource pricing, suitable for introductory economics students.

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