Multiple Choice
In a machine shop, the marginal physical product of an additional unit of labor is 4 units of output, while the marginal physical product of an additional piece of machinery is 2, under what conditions would the firm increase labor usage?
A) It would increase labor usage if the wage rate is more than twice the unit price of a piece of machinery.
B) It would increase labor usage if the wage rate is less than twice the unit price of a piece of machinery.
C) It would increase labor usage as long as the wage rate is less than the unit price of a piece of machinery.
D) It would not increase labor usage under any scenario.
Correct Answer:
Verified
Correct Answer:
Verified
Q236: Decreasing returns to scale is strictly a
Q237: Figure 7-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 7-7
Q238: Economies of scale<br>A)require inputs' MPP to fall
Q239: The graph of the average cost curve<br>A)is
Q240: The marginal cost curve shows the per-unit
Q241: Are returns to a single input and
Q242: Average physical product measures the output per
Q243: The optimum quantity of an input occurs
Q244: Figure 7-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8592/.jpg" alt="Figure 7-7
Q245: Which of the following is the correct