A soda factory employs seven workers and produces 500 bottles of soda a day. The company reduces the workforce to six workers and output is now 450 bottles a day. The seventh worker:
A. had a marginal product of 50 bottles of soda.
B. caused average product to fall.
C. had a lower marginal product than the sixth worker.
D. All of these are true.
D. All of these are true.
You might also like to view...
Beth recently began running her husband's lumber mill. Last month she took in $5,000 in sales revenue and paid $3,400 in out-of-pocket costs. She made an economic profit last month if her implicit costs were:
a. $1000. b. $1600. c. $2400. d. $3300.
A quota is a
a. tax imposed on each unit of an exported good b. tax imposed on each unit of an imported good c. change in the terms of trade between two nations d. result of opportunity cost differentials between two nations e. restriction on the quantity of a good that may be imported
Profits in the short run attract resources to industries in the long run, allowing them to expand.
Answer the following statement true (T) or false (F)
If the relationship between the change in the inflation rate and the unemployment rate is depicted by the PP curve, then the value of the unemployment rate where the PP curve crosses zero is the nonaccelerating inflation rate of unemployment.
Answer the following statement true (T) or false (F)