Other things being equal, as diminishing marginal returns begin to occur, the marginal revenue product of labor:
A. decreases as more workers are used.
B. increases as more workers are used.
C. remains unchanged as more workers are used.
D. None of these
Answer: A
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If the total wages paid change from $200,000 to $250,000 when the quantity of labor employed increases from five to seven workers, the marginal wage is
A. $50,000. B. $25,000. C. $250,000. D. $35,714.
Explain why insurance has been beneficial to markets
What will be an ideal response?
The figure above shows the market for milk. If a drought lowers the productivity of dairy cows so that they give less milk, then the efficient quantity of milk ________ and the consumer surplus ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Under a perfectly price discriminating monopolist, each consumer consumes ________ a perfectly competitive market.
A. the same amount of output as they would under a non-discriminating monopolist as well as B. less output than they would under an imperfectly price discriminating monopolist, but more than under C. more output than they would under an imperfectly price discriminating monopolist, but less than under D. the same amount of output as they would under