Red Stone Creamery currently hires 5 workers. When it added a 6th worker, its output actually fell. Which of the following statements is true? O The sixth worker is not as skilled as the fifth worker. O The marginal product of the sixth worker must be negative. O The total product becomes negative O The average product of the sixth worker is negative.

Red Stone Creamery currently hires 5 workers. When it added a 6th worker, its output actually fell. Which of the following statements is true? O The sixth worker is not as skilled as the fifth worker. O The marginal product of the sixth worker must be negative. O The total product becomes negative O The average product of the sixth worker is negative.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 8P

See similar textbooks

Similar questions

What is a production technology?
Give the three reasons that explain why the division of labor increases an economys level of production.
What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why do you suppose that is? Is this relationship the same in the long run as in the short run?
Suppose the cost of machines increases to 55, while the cost of labor stays at 40. How would that affect the total cost of the three methods? Which method should the film choose now?
What are the factor payments for land, labor, and capital?
Would you consider an interest payment on a loan to a film an explicit or implicit cost?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the money, it would have of pay 8 interest on the loan, but it currently has the cash, so it will But need to borrow. Should the firm make line investment? Show your work.
How does fixed cost affect marginal cost? Why is this relationship important?
How do we calculate marginal product?
A firm had sales revenue of 1 million last year. It spent 600,000 on labor, 150,000 on capital and 200,000 on materials. What was the firms accounting profit?
5. What is the average product of labor, given that the level of labor equals 10, total outout equals 1200 and the marginal product of labor equals 200?