Author Question: When lumber from Brazilian forests is used by a U.S.-owned company to produce furniture in Canada, ... (Read 76 times)

Zulu123

  • Hero Member
  • *****
  • Posts: 525
When lumber from Brazilian forests is used by a U.S.-owned company to produce furniture in Canada, the value of the furniture produced will be counted as a final good in
 
  A) Canada's GDP. B) U.S. GDP. C) Brazil's GNP. D) Brazil's GDP.

Question 2

Why is it more difficult for a firm to calculate the marginal revenue product of a player in the industry of professional sports versus that of a worker in a competitive manufacturing industry?
 
  What will be an ideal response?



carlsona147

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

A

Answer to Question 2

The owner of a professional sports team can only estimate how much value adding a particular player will have in terms of increased ticket sales and increased television revenue. However, even if the player is just as productive as always fans may lose interest and ticket sales can drop because the team is doing poorly or other factors independent of the player's productivity in the game. In a manufacturing industry it is usually easier to calculate the marginal productivity of a worker since it is something that is easily observed. Also, the price in a competitive manufacturing industry is likely to be more stable and thus the MRP as well.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

For a complete list of videos, visit our video library