All else constant, an increase in productivity has the effect of causing:
A) the marginal product of labor to increase and no effect on the average product of labor.
B) the average product of labor to increase and no effect on the marginal product of labor.
C) the marginal product of labor to increase and the average product of labor to decrease.
D) both the marginal and average product of labor to increase.
D
You might also like to view...
If the demand curve and the supply curve for a good are straight lines, then the deadweight loss that results from a tariff is represented on the supply-and-demand graph by
a. the area of one triangle. b. the area of one rectangle. c. the combined areas of two different triangles. d. the combined areas of two different rectangles.
Assume the market is in equilibrium in the graph shown at demand D and supply S2. If the supply curve shifts to S1, and a new equilibrium is reached, which of the following is true?
A. Producer surplus would decrease, and total surplus would decrease. B. Producer surplus would increase, and total surplus would increase. C. Producer surplus would increase, and total surplus would decrease. D. Producer surplus would decrease, and total surplus would increase.
Answer the following statement(s) true (T) or false (F)
1. The marginal cost of producing tea can be measured in dollars per pound of tea. 2. A firm's revenue can be calculated from its demand curve using the formula "price times quantity." 3. Fixed costs have no effect on a firm's profit. 4. Profits will be positive as long as marginal revenue is greater than marginal cost. 5. If marginal cost exceeds marginal revenue, then a reduction in output will create higher profits.
If the executives of the U.S. silicon-chip industry lobby Congress for protection from imports on the grounds that foreign producers are selling silicon chips in the United States below production costs, they are using the:
A) environmental standards argument. B) retaliation against dumping argument. C) cheap foreign labor argument. D) national security argument.