A firm can produce 840 gallons of paint per day with 6 workers, or 910 gallons per day with 7 workers. The marginal product of labor over this range of output, stated in gallons per worker per day, is
a. 140.
b. 135.
c. 130.
d. 70.
d
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A monopolistically competitive firm
A. tries to differentiate its product from competitors’ products. B. faces a perfectly elastic demand curve for its product. C. has more monopoly power in the long run than does a perfectly competitive firm. D. is always a retail establishment.
Financial intermediaries, such as commercial banks, help borrowers, particularly small borrowers, by:
A. offering tax-preferred borrowing opportunities. B. eliminating the risk of borrowing. C. providing information to evaluate financial investments. D. providing credit that might otherwise not be available.
If the best surgeon in town is also the best at cleaning swimming pools, then according to economic reasoning, this person should
A) split his time evenly between being a surgeon and cleaning swimming pools. B) pursue the activity he enjoys more. C) specialize in being a surgeon because its opportunity cost is lower. D) specialize in cleaning swimming pools because it is more labor-intensive.
In the Keynesian model in the long run, an increase in the money supply will raise
A) the price level but not the level of output. B) the level of output but not the price level. C) both the level of output and the price level. D) neither the level of output nor the price level.