Gertrude Stork's Chocolate Shoppe normally employs 4 workers. When the Chocolate Shoppe hired a 5th worker, the Shoppe's total output decreased. Therefore
A) the marginal product of the 5th worker is negative.
B) the total output of Gertrude Stork's Chocolate Shoppe is negative.
C) the average product of the 5th worker is negative.
D) the 5th worker should be hired only if he is willing to accept a wage lower than the wage paid to the other 4 workers.
Answer: A
You might also like to view...
If the risk associated with a particular outcome is ________, or the value of a particular outcome is ________, then cost-benefit analysis might lead people to accept too little risk
A) overestimated, overestimated B) overestimated; underestimated C) underestimated; overestimated D) underestimated; underestimated
The study by economists Cox and Alm found
a. the gap between rich and poor shrinks greatly if using after-tax income compared with pre-tax income. b. the gap between rich and poor shrinks slightly if using after-tax income compared with pre-tax income. c. the gap between rich and poor widens slightly if using after-tax income compared with pre-tax income. d. the gap between rich and poor widens greatly if using after-tax income compared with pre-tax income.
efer to Figure 8.8. This farmer's profit-maximizing level of output is __________ units of output. A) 200 B) 700 C) 1,000 D) 1,400
A nation's gross domestic product (GDP):
A. can be found by summing C + I g + G + X n . B. is the dollar value of the total output produced by its citizens, regardless of where they are living. C. can be found by summing C + S + G + X n . D. is always some amount less than its NDP.