You are an employer seeking to fill a vacant position on an assembly line. Are you more concermed with the average product of labor or the marginal product of labor for the last person hired? O A. The marginal product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns. O B. The average product of labor because productivity is maximized when average product is maximized. This determines the output where revenue and profit are maximized. O C. The average product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns O D. The marginal product because it measures the effect the last person hired has on output, or total product. This helps determine the revenue generated by hiring an another worker, which can be compared with the cost of hiring an another worker

You are an employer seeking to fill a vacant position on an assembly line. Are you more concermed with the average product of labor or the marginal product of labor for the last person hired? O A. The marginal product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns. O B. The average product of labor because productivity is maximized when average product is maximized. This determines the output where revenue and profit are maximized. O C. The average product of labor because to maximize profits, you will want to hire labor up to but not exceeding the point where labor begins to experience diminishing marginal returns O D. The marginal product because it measures the effect the last person hired has on output, or total product. This helps determine the revenue generated by hiring an another worker, which can be compared with the cost of hiring an another worker

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

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A small specialty cookie company, whose only variable input is labor, finds that the average worker can produce 100 cookies per day, the cost of the average worker is $32 per day, and the price of a cookie is $1.00. Is the firm maximizing profit? The firm O A. is not maximizing profit because the marginal revenue product of labor is greater than the wage. O B. is not maximizing profit because the marginal revenue product of labor is less than the wage. O C. is maxinmizing profit because the marginal product of labor is greater than the wage. O D. is not maximizing profit because the price of the output is not equal to the wage. O E. is not maximizing profit because the marginal product of labor is greater than the wage.
When diminishing marginal returns to labor sets in, that means: Select one: O a. With an increasing number of new employees causes the marginal product of another employee to be smaller than the marginal product of the previous employee at some point O b. MPKL is falling O c. variable costs remain constant as more output is produced O d. Marginal product of labor is increasing
Jill runs a factory that makes lie detectors in Little Rock, Arkansas. This month, Jill's 34 workers produced 690 machines. Suppose Jill adds one more worker and, as a result, her factory's output increases to 700. Jill's marginal product of labor from the last worker hired equals Select one: O a. 20. O b. None of the above answers is correct. O c 690. O d. 700. O e. 10.
If 15 workers produce 100 license plates, 16 workers produce 120 license plates, and 17 workers produce 130-license plates, then O diminishing marginal returns have not set in because the marginal product is positive O the marginal product of the seventeenth worker is 130 O diminishing marginal returns must begin with the sixteenth worker O the marginal product of the sixteenth worker is greater than the marginal product of the seventeenth worker O the marginal product of the fifteenth worker must be 20
When the marginal product of an additional worker is less than the marginal product of the previous worker, there are O A) increasing marginal returns to labor O B) decreasing marginal returns to labor C) decreasing total returns to labor D) increasing total returns to labor
The figure shows the total product curve for different levels of a variable input, labor. O In the figure, marginal product of labor becomes negative beyond point A O C O B Output E Total Product curve A B C DE Quantity of Labor
Suppose a firm faces the following average and marginal products of labor: APL=50+2L-0.05L² MPL 50+4L-0.15L² At what value of labor does Stage III of production begin? O a. 13.3 Ob. 35.9 OC. 0.0 d. 20.0 O e. 57.4
Use the table below to answer questions about a firm's hiring decision. Labor (workers) Output (units) Total Cost ($) $50 1 15 $60 2 27 $70 3 37 $80 45 $90 5 50 $100 What is the total cost when the marginal product of labor is 10? Choose one: O A. $60 о в. $30 O C. $20 O D. $50 O E. $70 O F. $10 O G. $90 O H. $40 O . $100 O J. $80 4.
Referring to Figure 6, Firm X uses labour (L) as the main inputs. Which of the following statements is false? Output per month E A Labor per month Figure 6 O a. At point E the average product of labor is negative. Ob. At point E the marginal product of labor is decreasing. O c. At point E the marginal product of labor is negative. O d. At point E the average product of labor is decreasing.
The average product of labor of workers in the Sony electronics facility that builds televisions is 20 TVs per worker per day. The marginal product of labor at the current level of output is also 20 TVs per worker per day. If more workers are hired to fill additional orders for televisions, Select one: O a. the average product of labor will increase. O b. the marginal product of labor will increase. O c. the average product of labor will decrease. O d. None of the above.
Oc. The marginal product of labour is rising as hours of study increase. O d. The marginal product of labour is zero beyond 15 hours. Imagine that you work for 40 hours per week at the wage rate of £10 an hour. Your free hours are defined as the number of hours not spent in work per week, which in this case is 24 hours x 7 days - 40 hours = 128 hours per week Suppose now that your wage rate has increased by 100%. If you want to keep your total weekly income constant, then: Select one or more: a. Your total number of hours will fall by 25%. O b. Your total number of hours will fall by 50%. O C. You will work 25 hours per week. O d. Your free time will increase by 25%. ASUS ZenBook
What happens to marginal revenue productivity of a factor when there is an increase in unit of factors? a) No change b) Decline c) Increase d) Either increase or decrease Answer O O O O