Which of the following statements is true? O A. The MP of labour is increasing at short run because the stock of capital is fixed. O B. The MP of labour, after an increase at the beginning, is declining while remaining positive at short run. O C. Adding more labour will produce progressively greater increments of output. O D. The MP of labour is always negative at short run.

Which of the following statements is true? O A. The MP of labour is increasing at short run because the stock of capital is fixed. O B. The MP of labour, after an increase at the beginning, is declining while remaining positive at short run. O C. Adding more labour will produce progressively greater increments of output. O D. The MP of labour is always negative at short run.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter9: Production Functions

Section: Chapter Questions

Problem 9.2P

See similar textbooks

Similar questions

Please answer arjent fast
May you tell me, which one is correct? Thank you so much.
Why is total efficiency units of labor used as an indicator of how much the economy can produce? O A. The average human capital of workers changes over time. O B. The data on total number of workers in an economy is not easily availaple. OC. The efficiency of workers depends on the economy's total production. O D. There exist differences in workers' human capital. A decrease in the total efficiency units of labor results from Mn the average efficiency of workers and/or V in the total number of workers in the economy. Identify the etlect on GDP due to the following factors. a decrease Factors an increase An improvement in transportation facilities
Use the below graph to answer the question: Output per labour Production D function 3 Production function 2 B Production function 1 A E Capital per labour Which of the following events will lead the economy to move from point A to E? O a. A permanent increase in soil salinity levels which reduces agricultural output. O b.A drop in export demand. C. Some infrastructure is destroyed by an earthquake. O d. An increase in income tax. O e. The retirement of unproductive machines.
A firm invests $125 million in a new manufacturing plant in your country. What would be the impact on the country's production function? Select one: O a. shift outwards O b. movement upwards along the same curve O c. shift inwards O d. movement downward along the same curve O e. remain unchanged
A plant producing T-shirts finds that output will vary with the number of workers employed per week in the following way: Number of workers Output (T-shirts per week) employed per week 1 14 36 3 66 4 92 110 120 7 125 8 125 The maximum possible weekly average product of labor in the plant is Select one: O a. 33 shirts. O b. 92 shirts. O c. 18 shirts. O d. 23 shirts.
Refer to the table below to answer the following questions. O a. 2 teapots. Ob. 9 teapots. Oc 7 teapots. O d. 4 teapots. O e. 6 teapots. Table 10.2.1 Labour (workers per day) 1 2 3 Output (teapots per day) 0 3 12 19 23 25 Refer to Table 10.2.1 which gives Tania's Teapots' total product schedule. The marginal product when Tania's increases the number of workers from 3 to 4 per day is
Question 2 in the second stage of production function the TP and MP is O A. TP is increase and MP is decrease O B. TP is increase and MP is increase C. TP is decrease and MP Increase OD. TP is increase and MP is increase
Use the table below to answer the following questions. O a. $6.25. O b. $5. $4.25. Table 10.3.1 Labour TFC TVC TC Output (workers per (teapots per (dollars per (dollars per (dollars per day) 0 day) day) day) 0 Oc с. O d. $25. Oe. $4. 1234 141569 0 5 13 18 day) 20 20 20 20 20 20 - E 100 125 型 20 5 270 5 - 145 Refer to Table 10.3.1, which gives Tania's Teapots' total cost schedule. When output increases from 4 to 9 teapots, the marginal cost of one of the 5 teapots is 45 95
Suppose a huge scientific breakthrough doubles the output that an additional houra huge scientific breakthrough doubles the output that an additional hour of U.S. labor can produceof U.S. labor can produce. As a result, there is ______ in the U.S. production function. A. an upward shiftan upward shift B. no shiftno shift C. a downward shifta downward shift There is ______ in the U.S. demand for labor and ______ in the U.S. supply of labor. A. a decreasea decrease; a decreasea decrease B. an increasean increase; a decreasea decrease C. no changeno change; an increasean increase D. an increasean increase; no changeno change
Refer to the figure at right Which of the following changes causes the move from A to B? Capital per year O A. The budget of the producer O B. The price of one of the inputs O C. The productivity of inputs O D. The quantity to be produced K Labor per y L.
Suppose that the production function for the economy is Y = AKPLU5. If the capital stock = 40,000, the quantity of labor = 10,000, and the efficiency index = 3, the equilibrium real wage is O A. $3. O B. $4.50. OC. $9. O D. $16.67.