Question: 1. Draw a factor demand curve. Label each axis. 2. Explain why the demand for factors is a derived demand. 3. Define marginal revenue product.

1. Draw a factor demand curve. Label each axis.
2. Explain why the demand for factors is a derived demand.
3. Define marginal revenue product.
4. Explain why a factor demand curve is downward-sloping.
5. Define value marginal product.
6. Explain under what conditions MRP will equal VMP.
7. Define marginal factor cost.
8. Describe how a firm finds its profit maximizing factor level.
9. Graphically show the quantity of a factor that will maximize a firm’s profit.

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