Suppose that an accounting firm with 10 employees hires another accountant. By doing so, it goes from serving 30 customers each week to serving 32 customers each week. What is the marginal product of labor for the new accountant?
A. 32
B. 2
C. 62
D. 10
B. 2
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Which of the following statements is true about a competitive market? A competitive market
A) has a handful of sellers but always has many buyers. B) must have a physical location. C) includes markets for goods and services but not for inputs. D) has so many buyers and sellers that no one can influence the price. E) has one seller competing to sell his or her product.
Though useful, purchasing power parity does not completely explain long-run movements in exchange rates due to
A) some goods being nontradeable. B) changes in the real exchange rate. C) differentiated products. D) all of the above.
The first successful application of continuous process manufacturing was in:
a. textile mills. b. automobile manufacturing. c. manufacturing of guns. d. grain milling.
If a firm sells its product in a monopolistic market, even though the firm operates in a perfectly competitive labor market, the firm will employ workers up to the point where
A) TR = TC. B) the MRP = the wage rate. C) the MRP = the marginal physical product of labor. D) the MRP = the output price.