1. IF TWO RESOURCES ARE COMPLEMENTARY, AN INCREASE IN THE PRICE OF ONE

WILL REDUCE THE DEMAND FOR THE OTHER.

2. PRICE DECLINES FOR COMPUTER EQUIPMENT HAVE HAD STRONGER OUTPUT

EFFECTS THAN SUBSTITUTION EFFECTS, INCREASING THE DEMAND FOR

COMPUTER SOFTWARE ENGINEERS AND SPECIALISTS.

3. THE LARGER THE NUMBER OF GOOD SUBSTITUTE RESOURCES AVAILABLE, THE

LESS WILL BE THE ELASTICITY OF DEMAND FOR A PARTICULAR RESOURCE.

4. THE GREATER THE ELASTICITY OF PRODUCT DEMAND, THE GREATER THE

ELASTICITY OF RESOURCE DEMAND.

5. THE DEMAND FOR LABOR WILL BE LESS ELASTIC WHEN LABOR IS A SMALLER

PROPORTION OF THE TOTAL COST OF PRODUCING A PRODUCT.

6. THE MARGINAL PRODUCTIVITY THEORY OF INCOME DISTRIBUTION RESULTS IN

AN EQUITABLE DISTRIBUTION IF RESOURCE MARKETS ARE COMPETITIVE

7. THE MARGINAL PRODUCTIVITY THEORY RESTS ON THE ASSUMPTION OF

IMPERFECTLY COMPETITIVE MARKETS.

8. THE FIRM SHOULD DECREASE THE AMOUNT OF “A” AND INCREASE THE AMOUNT

OF “B” IT EMPLOYS IF IT WISHES TO DECREASE ITS TOTAL COST WITHOUT

AFFECTING ITS TOTAL OUTPUT.

9. IF THE FIRM WISHES TO MAXIMIZE ITS PROFITS, IT SHOULD INCREASE ITS

EMPLOYMENT OF BOTH “A” AND “B” UNTIL THEIR MARGINAL REVENUE PRODUCTS

FALL TO $2 AND $5, RESPECTIVELY.