If the marginal physical product of labor increases with the addition of new workers, it's because
a. labor specialization raises labor productivity
b. the new workers are hired at lower wage rates
c. the law of diminishing returns applies to new workers
d. the supply curve of labor is upward sloping
e. of the low productivity of capital
A
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Which of the following is an example of a common resource?
A) elephants in the wild B) lions in a zoo C) public transportation D) a college education
Evidence in support of the hypothesis that unions increase the productivity of union workers is
A) the fact that union wages are greater than nonunion wages. B) there is an excess supply of labor at the union wage rate. C) that unionized firms face lower turnover rates than nonunion firms do. D) that most contracts are settled without a strike.
The concept of ___________ of scale means that as the scale of output goes up, average costs of production decline.
a. economies b. focus c. advantage d. productivity
Refer to the graph shown. In equilibrium, consumer surplus is equal to:
A. 1,400. B. 600. C. 1,200. D. 2,000.