The marginal product of any input into the production process:
A. is the increase in output that is generated by an additional unit of input.
B. is the decrease in input that is generated by an additional unit of output.
C. is the constant ratio of inputs to outputs.
D. None of these is true.
A. is the increase in output that is generated by an additional unit of input.
You might also like to view...
Which of the following statements is true about a command economy?
a. Shortages occur because of complexities in the planning process. b. Planners determine what, how many, and for whom goods and services are to be produced. c. Planners often allocate goods and services through a rationing system. d. The quality of produced goods and services tends to be inferior. e. All of these are true.
Draw a graph showing the long-run average cost curve for a firm that experiences economies of scale.
What will be an ideal response?
A firm has no fixed factors of production in
A. the short run. B. the long run. C. the short run and in the long run. D. neither the short run nor the long run.
Youland is hit by a recession. What will be the impact of a countercyclical policy on labor demand in Youland if nominal wages are downwardly rigid?
What will be an ideal response?