A farm can produce 10,000 bushels of wheat per year with 5 workers and 13,000 bushels with 6 workers. The marginal product of the sixth worker for this farm is:
a. 500 bushels.
b. 10,000 bushels.
c. 23,000 bushels.
d. 3,000 bushels.
d
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Suppose the industry producing good x is perfectly competitive, and good x can be produced only in integer quantities; i.e. you can't produce fractions of units. Each firm only uses labor as an input, and the marginal product of labor is diminishing throughout.a. a. Draw marginal and average cost curves for a firm in this industry. b. In a perfectly competitive equilibrium in which X* unit are sold at price p*, how many firms are operating?
c. Now suppose there is a recurring fixed cost FC. How does that change your picture from part (a)? d. How does firm output, industry output, equilibrium price and the number of firms in the industry change as FC increases assuming the market continues to be perfectly competitive? e. In what sense might it become unreasonable to assume competitive (i.e. price-taking) behavior as FC gets large? If firms were to "think strategically" and price is the strategic variable, what happens to profit as FC increases? f. How would your answers to (d) and (e) change if firms produced different varieties of x? g. What is the highest possible FC that would result in x still being produced (assuming no firm can ever price-discriminate)? Assume market demand is linear and illustrate the firm's cost curves, output quantity and price. What will be an ideal response?
To attract more bidders, and more aggressive bidders, to your auction
a. withhold relevant information about the value of the object b. don't allow bidders to know how others are bidding c. allow potential bidders ample time to examine the object being sold d. do not hold oral auctions
An example of human capital would be:
A. your computer. B. your writing skills. C. your desk. D. None of these is an example of human capital.
One reason scholars argue that government activity should be considered when evaluating the measured income distribution because: a. the lowest-income quintile has benefited from state-subsidized higher education more than have middle-income and higher income quintiles. b. the higher-income quintiles have benefited more than the poor from housing subsidies and Medicaid
c. the middle and higher-income quintiles have benefited more than the poor from state-subsidized airports, airlines, operas, and museums. d. the lowest-income quintile has benefited more than middle-income and upper-income quintiles from state-subsidized airports, airlines, operas, and museums.