Graphically, what does the marginal product curve for a labor input look like? Explain in words
What will be an ideal response?
Typically, the marginal product of labor increases at low levels of labor inputs due to specialization and other factors. As labor inputs continue to increase, some workers may have fewer machines to work with and thus their marginal product decreases. In other words, the marginal product curve increases first and then decreases with successively increases in labor inputs.
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People who attend college for four years in order to equip themselves to earn higher incomes in later life are
A) discounting the future at a higher rate than do people who don't attend college. B) giving up future satisfaction for the sake of current satisfaction. C) ignoring the fact that future income has less value than current income. D) investing in human capital. E) revealing a high rate of time preference.
A worker that quits her job
A) is always counted among the unemployed. B) is never counted among the unemployed. C) will be counted among the structurally unemployed. D) may or may not be counted among the unemployed.
If the game in Scenario 13.17 were to be infinitely repeated, waging a price war might be a rational strategy
A) because there would be no short-term losses. B) because the short-term losses might be outweighed by long-term gains from preventing entry. C) if the potential entrant were irrational. D) if the monopolist had excess capacity. E) if there were no sunk costs to the potential entrant.
The three components of personal consumption expenditures are:
a. durable goods, nondurable goods, and services. b. durable goods, food, and housing. c. durable goods, nondurable goods, and housing. d. durable goods, services, and food. e. durable goods, services, and transportation.