Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 7, Problem 10SQ
To determine
The law of diminishing returns to scale and the marginal product curve of the labor.
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Students have asked these similar questions
When a firm experiences diminishing marginal product, what is the shape of the curve that represents the value of the marginal product of labor?
Select one:
a.
upward sloping
b.
downward sloping
c.
vertical
d.
U-shaped
Diminishing marginal product of labor means that:
A.
as more capital is employed, the marginal product of labor declines
B.
the increments to output produced by successive units of labor (holding other inputs constant) rises
C.
the increments to output produced by successive units of labor (holding other inputs constant) declines
D.
total output falls as more labor is employed
Which of the following describes the law of diminishing returns to labor?
A.
When one more worker got hired their marginal product was negative
B.
When one more worker got hired total product of the firm went down
C.
When one more worker got hired their marginal product was lower than the marginal product of the previous worker
Chapter 7 Solutions
Micro Economics For Today
Ch. 7.5 - Prob. 1YTECh. 7 - Prob. 1SQPCh. 7 - Prob. 2SQPCh. 7 - Prob. 3SQPCh. 7 - Prob. 4SQPCh. 7 - Prob. 5SQPCh. 7 - Prob. 6SQPCh. 7 - Prob. 7SQPCh. 7 - Prob. 8SQPCh. 7 - Prob. 9SQP
Ch. 7 - Prob. 10SQPCh. 7 - Prob. 11SQPCh. 7 - Prob. 1SQCh. 7 - Prob. 2SQCh. 7 - Prob. 3SQCh. 7 - Prob. 4SQCh. 7 - Prob. 5SQCh. 7 - Prob. 6SQCh. 7 - Prob. 7SQCh. 7 - Prob. 8SQCh. 7 - Prob. 9SQCh. 7 - Prob. 10SQCh. 7 - Prob. 11SQCh. 7 - Prob. 12SQCh. 7 - Prob. 13SQCh. 7 - Prob. 14SQCh. 7 - Prob. 15SQCh. 7 - Prob. 16SQCh. 7 - Prob. 17SQCh. 7 - Prob. 18SQCh. 7 - Prob. 19SQCh. 7 - Prob. 20SQCh. 7 - Prob. 21SQCh. 7 - Prob. 22SQCh. 7 - Prob. 23SQCh. 7 - Prob. 24SQCh. 7 - Prob. 25SQ
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- 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?arrow_forwardThe marginal product of labor (MPL) is defined as A. A. The extra output produced by employing one more unit of labor while allowing other inputs to vary B. The extra output produced by employing one more unit of capital while holding labor input constant C. A firm’s total output divided by (مقسوم على) total labor input D. The extra output produced by employing one more unit of labor while holding other inputs constantarrow_forwardWhat is the marginal product of labour increases, marginal cost tends toarrow_forward
- If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal product of capital equals 7 tons of output and the cost of capital is $14 per unit, then A. The cost of labor must be $1/7 B. The cost of labor (wage rate) must be $2 C. The cost of labor must be $7 D. The cost of labor must be $14 as wellarrow_forwardchoose a correct answerarrow_forwardThe marginal product of labor is the change in A) total cost from employing one more worker. B) total revenue from employing one more worker. C) total output from employing one more worker. D) total output divided by the change in cost from employing one more worker. E) average product from employing one more worker.arrow_forward
- What does diminishing marginal product imply? The marginal cost of an extra worker is unchanged. The marginal cost of an extra worker is less than the previous worker's marginal cost. The marginal product of an extra worker is less than the previous worker's marginal product. The marginal product of an extra worker is greater than the previous worker's marginal product.arrow_forwardDirections: For each of the following problems you should use EXCEL to calculate the various measures of costs. There are supplemental instructions for each problem. For your final copy to turn in you should make sure that each problem is numbered and that headings are provided for each column of numbers. You should also provide headings for each problem and graph and other appropriate documentation. Round all numbers to two decimal points. 1. You are given the following total cost function for a firm: TC = (25+F) +L xQ+0.5 x(Q²) where F-the number of the letter of the alphabet corresponding to the initial of your first name, and L-number of the letter of the alphabet corresponding to the initial of your last name. For example, if your name were Bill Weber, F=2 and L=23, so (MY NAME IS GABRIEL RIVES) TC = 27+ 23 xQ+ 0.5 × Q. Calculate TC, TFC, and TVC for the levels of output between Q-0 and Q=30 (i.e._ Q-0, Q=1, Q=2, Q=3,..., Q=29, Q=30). Make a graph of TC, TFC, and TVC as a function…arrow_forwardWhy does the marginal product of labor start to decrease after a certain number of workers are hired? What makes the difference? a) The variable input continues to increase while the fixed input is fixed. b) Both the variable and the fixed inputs are increasing at the same rate. is it a or b?arrow_forward
- A production process uses two inputs, labor and capital. If the marginal product of labor per dollar is higher than the marginal product of capital dollar, what should the firm do to lower costs? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Increase output b Decrease output C Increase the amount of capital d Increase the amount of laborarrow_forwardWhat is the marginal product of labor? the average output of a unit of labor the total output obtained by using one more unit of labor the average output obtained by using one more unit of labor the extra output obtained by using one more unit of laborarrow_forwardThe following table gives total output or total product as a func- tion of labor units used. LABOR TOTAL OUTPUT 1 5 2 9 3 12 4 14 5 15 a. Define diminishing returns. b. Does the table indicate a situation of diminishing returns? Explain your answer.arrow_forward
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