A bracelet making company has three employees, and together they produce 10 bracelets an hour. When a fourth worker joins them, the output for the company is now 11 bracelets an hour. Which of the following is true?
A. Average product has increased.
B. Diminishing marginal product started with the fourth worker.
C. Total product is increasing.
D. None of these is true.
Answer: C
You might also like to view...
When Jane Brown writes a $100 check to her nephew and he cashes the check, Ms. Brown's bank ________ assets of $100 and ________ liabilities of $100
A) gains; gains B) gains; loses C) loses; gains D) loses; loses
Depression refers to the period of time when there is high economic growth, whereas recession refers to the period of time when annual economic growth is between 0 and 3 percent
Indicate whether the statement is true or false
Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, what production technique should this firm use to produce 2 units of output? A) Production technique A B) Production technique B C) The firm is indifferent between production technique A and production technique B. D) It is impossible to determine if the firm should select production technique A or B because total fixed costs are not given.
All of the following are arguments in support of protectionist legislation except:
A. increasing political pressure on rogue nations. B. increasing competition for domestic producers. C. increasing income equality. D. increasing tax revenues.