Under which of the following sets of circumstances is it definitely the case that the average product increases as more labor is hired?
A) Total product increases as more labor is hired.
B) The marginal product is equal to the average product.
C) The marginal product is positive.
D) The marginal product is greater than the average product.
E) The marginal product is less than the average product.
D
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Tony's Pizza's production function is shown in the table above. a) Suppose Tony operates Plant 2. He hires 2 workers and produces 20 pizzas a day. Is the pizzeria technologically efficient? Why or why not? b) Suppose Tony operates Plant 1
He hires 2 workers and produces 18 pizzas per day. Is Tony's Pizza technologically efficient? Why or why not? Can Tony increase production to 22 pizzas a day in the short run? If yes, how? c) Suppose Tony operates Plant 3. What is the marginal product of labor when the fourth worker is hired? When operating Plant 3, does Tony experience diminishing marginal returns? Explain. d) Suppose Tony currently uses Plant 3. Can he increase production from 40 to 50 pizzas per day in the short run? In the long run? If yes, how?
The notion that, following a devaluation, the BOT falls for a while before increasing is called a ________ effect
A) relative price B) elasticity C) J-curve D) pass-through
The Condorcet voting paradox applies to situations in which voters
a. decide between exactly two possible outcomes. b. decide among more than two possible outcomes. c. as a group have transitive preferences. d. choose the inferior candidate even though the majority preferred the better candidate.
Real GDP is used most effectively to
A. Make international comparisons of the standard of living. B. Measure how much output can be consumed on a sustainable basis. C. Measure how much income households receive. D. Analyze the growth rate of the economy over time.