The marginal product of labor is the increase in output as a result of hiring an additional worker while the marginal revenue product of labor is the increase in profit as a result of hiring an additional worker
Indicate whether the statement is true or false
FALSE
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Fishermen on the East Coast are using lobster traps out of which most of the lobsters that enter can escape. Why?
A) It will make over-fishing less likely. B) They can't come up with better traps. C) They are not educated enough to maximize profit. D) They catch more lobsters this way.
In the 1970s, the government placed price ceilings on gasoline prices. A shortage of gasoline occurred, and long lines formed at the pumps. Some gas stations required that in addition to paying the price on the pump you had to buy a blank will
The action of having to purchase the will in order to purchase gas is known as A) a surplus. B) a price support. C) the price system. D) a black market.
Discount rate policy is most often
A. lowered when market rates rise. B. used to actively control the money supply. C. the Fed’s primary tool of monetary control. D. passively changed by the Fed to follow market rates.
The marginal product of labor may increase rapidly initially as more
A) workers are able to specialize. B) total product is decreasing. C) the amount of other inputs is held constant. D) workers will get crowded in a fixed factory.