Assume that for whatever reason there is a manufacturing firm exhibits a constant marginal product of labor over a certain range of production
Armed with only this information what would you be able to say about the average product and total product of labor curves of this firm.
The marginal product curve and the average product curve would be one and the same and would have a horizontal shape of the relevant production range. The total product function would be an upward-sloping linear function.
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Which of the following does free trade encourage?
A) higher rates of economic growth B) more rapid spread of technology C) domestic industries' access to larger markets D) all of the above
In a perfectly competitive market, when the price is greater than the minimum average total cost for all firms:
A. positive economic profits are being earned. B. firms will enter, causing the price to increase. C. firms will exit, causing the price to drop. D. None of these is true.
The demand for labor is:
a. derived demand. b. featherbedding demand. c. marginal utility demand. d. all of these.
Which of the following statements is not valid when the market supply curve is vertical?
a. Market quantity supplied does not change when the price changes. b. Supply is perfectly inelastic. c. An increase in market demand will increase the equilibrium quantity. d. An increase in market demand will increase the equilibrium price.