What is the relationship between the marginal product of labor and the marginal cost?
What will be an ideal response?
Initially, as each additional unit of labor is employed, the marginal product of labor increases. The cost of each worker is the same—the wage rate. Because each worker's cost is the same, but each additional worker produces more output than the previous worker, the cost of producing an additional unit of output decreases. The cost of producing an additional unit of output is the marginal cost. Therefore when the marginal product of labor is increasing, the marginal cost is decreasing. At some point, the marginal product of labor will reach a peak, at which level of output marginal cost is minimized. After that point, the law of diminishing returns means that the marginal product decreases. When the marginal product decreases, the marginal cost increases; each worker costs the same to hire, but an additional worker produces less output than the previous worker. Therefore when the marginal product of labor is decreasing, the marginal cost is increasing.
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From 1929 to 1932, the total value of the stock market:
A. stayed the same. B. more than tripled. C. more than quadrupled. D. decreased by nearly 90 percent.
The productivity slowdown of the 1970's occurred:
A. only in the U.S, the United Kingdom, and Japan. B. only in the U.S. and the United Kingdom. C. only in the U.S. D. around the world.
Discuss the impact of the restoration of convertibility in 1958
What will be an ideal response?
Which is the most accurate statement?
A. Most strikes cause no economic disruption. B. The job of a mediator is to impose a settlement. C. Collective bargaining negotiations occasionally end with a strike. D. The firm with the least ability to withstand a strike would be a manufacturing firm.