An increase in the productivity of a factor of production will
A. cause a firm to move down the marginal revenue product curve.
B. shift its marginal revenue product curve to the right.
C. cause a firm to move up the marginal revenue product curve.
D. shift its marginal revenue product curve to the left.
Answer: B
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Labor productivity can be increased with
A) education and training of the workforce. B) an increase in capital goods used. C) improvements in management. D) all of the above
An increase in income _____
a. makes the budget line flatter b. makes the budget line steeper c. makes the consumer worse off d. makes the consumer achieve a higher level of utility e. makes the consumer more selfish
Aggregate demand grows because
a. patent laws protect and stimulate new inventions. b. there is more machinery and technology improves. c. the government increases its spending, a growing population increases consumer spending, and the Fed increases the money supply. d. All of the above are correct.
If the quantity of gidgets demanded increases when the price of gadgets decreases
A. gidgets and gadgets are complements. B. gidgets and gadgets are substitutes. C. gadgets are normal goods, while gidgets are inferior goods. D. gidgets are normal goods, while gadgets are inferior goods.