Suppose a sandwich shop currently employs four workers and the shop produces 12 sandwiches an hour. A fifth worker gets hired and the shop now produces 15 sandwiches per hour. Which of the following is true?
A. The marginal product of the fifth worker is three sandwiches.
B. The total product of the sandwich shop is now 27 sandwiches.
C. Diminishing marginal product has set in.
D. All of these are true.
A. The marginal product of the fifth worker is three sandwiches.
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Figure 9.1 shows three aggregate demand curves. A movement from curve AD1 to curve AD0 could be caused by a(n)
A) increase in government spending. B) decrease in taxes. C) increase in the price level. D) decrease in the money supply.
Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. What is the maximum amount of pizza Dave can buy each week?
A) 40 B) 20 C) 200 D) 60
Under what circumstances might a government price ceiling lead to the development of a black market?
What will be an ideal response?
Refer to the game between James and Theodore depicted in Figure 12.1. Which of the following is true?
A. James's dominant strategy is to choose Up.
B. James's dominant strategy is to choose Down.
C. Theodore's dominant strategy is to choose Left.
D. Theodore's dominant strategy is to choose Right.