In any production process the marginal product of labor equals
a. Change in total output divided by change in labor input
b. Total output divided by total input
c. Total output
d. None of the above
a
You might also like to view...
If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals
A) 225. B) 250. C) 300. D) 450.
Free trade is ________, because it ________ the size of the pie available to the economy.
A. efficient; increases B. inefficient; increases C. efficient; decreases D. inefficient; decreases
Christy has a comparative advantage over Joel in making pizzas relative to making hotdogs. This means that:
a) Christy makes more pizzas in an hour than Joel does. b) Christy makes more hotdogs in an hour than Joel does. c) The opportunity cost of making pizzas is higher for Christy than for Joel. d) The opportunity cost of making pizzas is lower for Christy than for Joel.
Which of the following statements best describes the price, output, and profit conditions of competitive price-searcher markets?
a. Price will equal marginal cost at the profit-maximizing level of output; profits will be positive in the long-run. b. Price will always equal average variable cost in the short run and either profits or losses may result in the long run. c. Marginal revenue will equal marginal cost at the short run, profit-maximizing level of output; in the long run, economic profit will be zero. d. Marginal revenue will equal average total cost in the short run; long-run economic profits will be zero.