In the short run, which are most important in determining changes in output?
A. Marginal cost and marginal revenue
B. Total costs and revenue
C. Average cost and average revenue
D. Fixed costs
Answer: A
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Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. Show that the marginal productivity of labor diminishes in the short run
What will be an ideal response?
Positive economics
A) always gives an optimistic spin to economic news. B) is concerned with the economic policies that should be implemented. C) is objective. D) was not used by nineteenth century economists.
The marginal product of labour is defined as
a) the amount of output produced by a given labour force b) the minimum amount of workers required to produce a given level of output c) the increase in productivity of the marginal worker if capital is increased d) the amount of output one more worker could produce given other factors of production are fixed e) the cost of employing another worker
Mathematically the marginal rate of substitution is
A. sometimes a positive and sometimes a negative number. B. is equal to 1. C. always a negative number. D. always a positive number.