Graphically, we can think of the marginal product of a factor as the:
A. additional inputs associated with producing one more unit of output.
B. slope of the total production curve, when output is plotted against the quantity of the input that is used.
C. slope of the total cost curve, when output is plotted against the costs of the quantity of the inputs used.
D. additional cost associated with producing one more unit of output.
Answer: B
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A minimum wage set above the equilibrium wage rate for low-skilled workers ________
A) creates more employment opportunities for low-skilled workers B) creates more prosperity among younger people C) creates unemployment among low-skilled workers D) increases the number of good paying jobs available to young people
All else equal, if there are diminishing returns and constant returns to scale, then what happens to productivity if capital and labor both increase but capital increases by more?
a. Productivity will definitely fall. b. Productivity will definitely be unchanged. c. Productivity will definitely rise. d. None of the above are necessarily correct.
Which of the following statements is correct?
a. In the short run, unemployment and inflation are positively related. In the long run they are largely unrelated problems. b. Inflation and unemployment are positively related in the short run and in the long run. c. In the short run, unemployment and inflation are negatively related. In the long run they are largely unrelated problems. d. Inflation and unemployment are negatively related in the short run and in the long run.
When market failures occur
A. the invisible hand will correct for the market failures. B. buyers and sellers will correct the market failures. C. the price system will correct the market failures. D. the government can step in to correct the market failures.