Since the marginal product of labor equals the change in the quantity of output divided by the change in the quantity of labor, it stands to reason that:

a. a firm would never operate in the range where marginal product is negative.
b. a firm would never operate in the range where marginal product is decreasing.
c. marginal product will continually increase as the firm produces more.
d. there is no predictable relationship between marginal revenue and marginal cost.


Ans: a. a firm would never operate in the range where marginal product is negative.

Economics

You might also like to view...

When there are three or more options, plurality-rule voting does a good job of capturing the preferences of voters

Indicate whether the statement is true or false

Economics

________ refers to an action that an individual with private information takes in order to convince others about his information

A) Sniping B) Signaling C) Hedging D) Speculating

Economics

Refer to Table 20-1. The unemployment rate for this simple economy equals

A) (100/1,000 ) × 100. B) (100/15,000 ) × 100. C) (100/1,100 ) × 100. D) (100/20,000 ) × 100.

Economics

Under normal monopoly, price exceeds marginal cost, which implies that the:

A. total benefit to society of producing output is less than the total cost. B. total cost to society of producing output is less than the total benefit. C. marginal cost to society of increasing output is greater than the marginal benefit. D. marginal cost to society of increasing output is lower than the marginal benefit.

Economics