In the short run, marginal product of labor increases at first and then falls because
A) managerial inefficiency sets in when a firm gets too large.
B) the new workers do not have as much experience as those who have been with the firm for a long time and therefore are not as productive.
C) there are fewer opportunities for division of labor and specialization when fewer workers are hired.
D) as more labor is hired, they are not as skilled as the first ones hired.
C
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Government policy can potentially raise economic well-being
a. in all markets for goods and services. b. in economic models, but not in reality. c. when a good does not have a price attached to it. d. never.
If the consumer price index changes from 125 in September to 150 in October, what is the rate of inflation?
a. 45.5% b. 20.0% c. 16.7% d. 9.1%
When the relevant markets are local, the concentration and HHI based on figures for the entire United States tend to:
A. ignore the presence of import goods. B. give a more precise description of the real situation. C. be biased downward. D. be biased upward.
Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C