1. As more workers are hired, the marginal physical product of labor eventually declines because
a. Less efficient workers are hired as the number of workers increases
b. Of dis-economies of scale
c. Workers do not work well together when the number of workers increases
d. The amount of capital each worker has to work with declines as the number of workers increases
2. Cab drivers operating from JFK Airport to the city of New York legally must charge a specific fare. This is an example of:
a. The rate of return test
b. Social regulation
c. Economic regulation
d. The market share test
Marginal Product of Labor
Marginal Product of Labor is the the additional output produced by an additional worker. In the short run, labor is considered to be a variable input. Hence, the marginal product of labor is dependent on the short-run amount of capital being used by the firm.
Answer and Explanation: 1
1) Answer: d.
Marginal product of labor eventually declines as more workers are hired because the amount of capital is considered to be fixed in the...
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fromChapter 3 / Lesson 49
Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.