At low levels of production, marginal productivity of labor increases as labor increases. At high levels of production, marginal productivity of labor decreases as labor increases. Are these two statements contradictory? Explain
What will be an ideal response?
No. At low levels of production, marginal productivity of labor can increase due to specialization. Eventually, however, diminishing marginal productivity will commence.
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Refer to Table 17-2. The marginal revenue product of labor from the third unit of labor is
A) $5,460. B) $1,560. C) $1,260. D) $780.
Can the U.S. dollar and the euro both appreciate relative to each other? a. Yes, both countries can gain in this manner
b. Yes, provided the central banks agree to permit it. c. No, if one currency appreciates relative to another, the other depreciates. d. No, the citizens of the countries would not agree to it.
Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ________ packages.Number of (Identical) MachinesTotal Packages Wrapped15,00029,000312,000
A. 15,000 B. 12,000 C. 4,000 D. 3,000
Suppose the production of mp3 players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is (are) TRUE?
A) The production function has decreasing returns to scale. B) The marginal productivity of labor falls as labor increases in the short run. C) Capital and labor can be substituted for one another. D) All of the above.