The marginal product of labor is equal to the: A. incremental cost associated with a one unit...
Question:
The marginal product of labor is equal to the:
A. incremental cost associated with a one unit increase in labor
B. incremental profit associated with a one unit increase in labor
C. increase in labor necessary to generate a one unit increase in output
D. increase in output obtained from a one unit increase in labor
Marginal Product:
Economically, marginal product determines the level of productivity of the input factors. If the marginal product of an input factor is greater, then it implies that an increase in usage of one unit of that factor increases that firm's output level and vice versa.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerThe correct option is (D.) increase in output obtained from one unit in labor
The marginal product of labor is denoted as:
{eq}M{P_L} =...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:

from
Chapter 12 / Lesson 6The amount of output produced per work interval determines worker productivity. Learn how to define worker productivity, explore the factors that impact productivity, find out why organizations care about it, and take a look at some statistics from the U.S. Bureau of Labor and Statistics.
Related to this Question
- The marginal product of labor is the _____. A. change in labor necessary to produce an additional unit of output B. cost of additional labor necessary to produce an additional unit of output C. change in output resulting from adding an additional unit of
- Marginal revenue product measures the increase in a. output resulting from one more unit of labour. b. TR resulting from one more unit of output. c. revenue per unit from one more unit of output. d. total revenue resulting from one more unit of labor.
- Marginal revenue product measures the increase in a. output resulting from one more unit of labor. b. TR resulting from one more unit of output. c. revenue per unit from one more unit of output. d. total revenue resulting from one more unit of labor.
- The additional cost associated with the hiring of one more unit of labor is known as the: A. marginal utility of labor. B. marginal factor cost of labor. C. marginal revenue product of labor. D. marginal physical product of labor.
- The marginal product of labour is the increase in the total product that results from A) One-unit increase in both the quantity of variable and fixed inputs. B) One-unit increase in the quantity of fixed inputs employed, holding the quantity of the vari
- If the marginal product of labor has been rising with each labor unit hired over the past 30 labor units, then the marginal cost of production has as output rose with these last 30 hired labor units.
- The addition to revenue obtained from firing an additional unit of labor is: a. marginal revenue product. b. marginal physical product of labor. c. total product. d. marginal factor cost.
- The marginal product of labor initially rises as more labor is employed because of: a. total factor productivity. b. a fall in the cost of hiring additional labor. c. constant returns to scale. d. division and specialization of labor. e. an increase in pr
- The marginal product of labor is: A) the additional output produced by an extra worker B) the increase in costs borne by the firm when one extra worker is hired C) always greater than the wage earned by one additional worker D) the increase in firm revenu
- If total product of labor is rising at an increasing rate: A. marginal product of labor is rising. B. marginal product of labor is at its minimum. C. marginal product of labor is at its maximum. D. marginal cost is rising. E. average product of labor is a
- Diminishing returns to labor means: a) Each additional unit of labor leads to a greater increase in output b) Each additional unit of labor leads to a greater increase in productivity c) Each additional unit of labor leads to a smaller increase in output
- The marginal product of labor can be defined as the change in a) output divided by the change in labor. b) labor divided by the change in total cost. c) labor divided by the change in output. d) profit divided by the change in labor.
- The production function is the: a.) increase in the amount of output from an additional unit of labor. b.) marginal product of input times the price of output. c.) relationship between the number o
- The nominal wage rate is W = $1,000 per worker and the price of the output is P = $10 per unit. Suppose that due to a technological advance, the productivity of labor increases so that the marginal product of each and every worker increases by 40 units. S
- The law of diminishing marginal returns (a) does not hold when the marginal product is always positive (b) has to hold when an additional unit of capital produces more extra output than an additional unit of labor (c) has to hold when increasing capital
- If the additional output from each new worker is rising: a) the marginal cost of that output is rising because the only additional cost to producing more output is the additional wages paid to hire more workers. b) the marginal cost of that output is risi
- The additional revenue earned from hiring one more worker is known as the: A. marginal physical product of labor. B. marginal revenue product of labor. C. marginal factor cost of labor. D. marginal utility of labor.
- The value of the marginal product of labor (VMP_L) is the: a. change in total revenue that results from selling one more unit of output. b. change in output that results from employing one more unit of labor. c. additional revenue generated from employing
- The marginal revenue product of labor is the A. addition to total revenue when the firm produces and sells an extra unit of output. B. amount produced per worker per time period. C. change in total output that is produced when one extra worker is employed
- The marginal product of labor is: A. equal to the demand for labor. B. the payment made to workers for their contribution to the output they produce. C. the change in a firm's revenue as a result of hiring one more worker. D. the additional output a firm
- For a production function with a diminishing, but positive, marginal product of labor: a. Output increases at an increasing rate as more workers are employed. b. Output increases at a decreasing rate as more workers are employed. c. Output declines as
- The value marginal product (VMP) of an input is: - the additional output produced by a firm when it increases the level of that input by an additional unit. - the cost of that input. - the total output produced by that input. - the additional revenue
- A firm produces output with capital and labor. Suppose currently the marginal product of labor is 21 and the marginal product of capital is 6. Each unit of labor costs $12 and each unit of capital co
- The marginal product of labor is the increase in total product from a A. one-dollar increase in the wage rate, while holding the price of capital constant. B. one unit increase in the quantity of labor, while also increasing the quantity of capital by one
- Adding a variable input (labor) to a fixed input (capital) will result in an increase in output: A. Until the marginal product of labor is maximized. B. Until the marginal product of labor begins to d
- The marginal revenue product is: a. an increase in the profit of a firm with an increase in the output by one unit. b. the value that all the unskilled workers contribute to a firm. c. the value th
- When labor is the only input a firm uses, the marginal cost of a unit of output can be defined as: a. Wage divided by number of workers, b. Marginal product of labor multiplied by wage, c. Wage divided by marginal product of labor, d. Marginal product of
- Marginal cost can be defined as the change in: A. cost resulting from one more unit of production. B. cost resulting from one less unit of production. C. benefit resulting from one more unit of production. D. benefit resulting from one less unit of produc
- Diminishing marginal returns means that: a. as more capital is used in production, but the labour input is held constant, MPK falls. b. as labour increases and capital decreases for a given level of output, the marginal product of labour divided by the
- Marginal product of labour is the increase in total product that results from a: A) one-unit increase in the quantity of fixed inputs employed, holding the quantity of the variable inputs constant. B) 1 percent change in the quantity of labour and the q
- If an additional unit of labor costs $150 and has an MPP of 50 units of output, the marginal cost is: A. $0.03 B. $0.30 C. $3.00 D. $5.00
- The marginal product of labor is the change in total product from a one-unit increase in A. the wage rate. B. both the quantity of labor and the quantity of capital employed. C. the quantity of labor employed, holding the quantity of capital constant. D.
- When the marginal product of an input declines as the quantity of the input increases, the production function exhibits: a) increasing marginal product. b) diminishing marginal product. c) diminishing total product. d) Both b and c are correct.
- The point in diminishing marginal returns occurs with each additional unit of a variable input when: A. Total output grows at a lower rate B. Marginal physical product becomes negative C. Workers demand higher wages D. None of the above
- The marginal productivity of labor is defined as _____. a. a firms total output divided by total labor input. b. the extra output produced by employing one more unit of labor while allowing other inputs to vary. c. the extra output produced by employing o
- Is the cost increase to each additional unit of labor incurred due to being above capacity level and associated to cost with creating capacity? What are the factors that influence the decrease in the marginal production attributed to each additional unit
- All other inputs remaining the same, the additional output that may result from an additional unit of labor is called: a. marginal cost b. marginal product c. marginal revenue d. marginal utility
- Marginal revenue product (MRP) is the: a. additional output generated by employing an additional factor unit. b. additional profit generated by employing an additional factor unit. c. additional revenue generated by employing an additional factor unit min
- The marginal product of capital _____ as additional units of capital are added, holding the labor force constant, causing the production function to become _____. a. increases; steeper b. increases; flatter c. decreases; steeper d. decreases; flatter
- 1. The marginal product (MP) is the change in total product from one additional unit of input (labor). a) True b) False 2. Dis-economies of scale result when increases in output lead to .......
- If the MPP of an additional unit of labor is 5 units per hour, product price is constant at $3 per unit, and the wage rate is $16 per hour, then ____. a. an additional unit of labor should be employed b. an additional unit of labor should not be employed
- When there are economies of scale, A. per-unit costs increase as output increases B. per-unit costs decrease as output increases C. per-unit costs are constant as output increases D. output does not affect per-unit costs
- A production function that uses only labor as input is given by: As you can see, the firm needs more than 10 units of labor to produce a positive amount of output. Let w be the cost of a unit of labor
- The marginal product of labor (MPL) is: a) total output divided by the number of workers employed b) the change in total output attributed to employing an additional worker c) the change in total output attributed to producing an extra unit of a good d) t
- The marginal revenue product a) gives the change in the total product when an additional unit of a good is hired. b) always increases when there is an increase in a variable input. c) represents t
- If the average product of labor is increasing, which of the following must be true? 1) The marginal product of labor is falling. 2) The marginal product of labor is increasing. 3) The marginal product of labor is greater than the average product of labor
- When you have diminishing marginal returns to labor, A. variable costs fall as more output is produced. B. variable costs remain constant as more output is produced. C. fixed costs rise as more output is produced because you have to buy more equipment
- Unit of Labor Output Marginal Product Price MRP_1 Marginal Revenue Product MRP_2 Marginal Revenue Product 0 0 1 50 $20 2 90 $20 3 $20 $600 4 20 $20 5 $20 $200 6 155 $20 1. Provide the missing values in the first five columns of the table. Ignore the
- A profit-maximizing firm will hire additional units of labor until: a. the additional cost of hiring the last worker equals the additional revenue generated by that worker b. the extra revenue from hi
- The marginal revenue product is: a) the value of all the final goods and services produced by a firm. b) the value that a worker contributes to a firm. c) an increase in the profit of a firm with an increase in the output by one unit. d) the output pe
- Hiring a unit of labour costs $10 while hiring a unit of capital costs $20. The marginal product of capital is equal to 200. A cost-minimizing manager will hire labour until its marginal product falls to: a) 50 b) 100 c) 200 d) 400
- The marginal revenue product gives: a. the additions to total cost when an additional unit of a variable input is hired. b. the additional revenue obtained when an additional unit of a variable input is hired. c. the change in total product for an additio
- In the short run, when the marginal product of labor {Blank}, the marginal cost of an additional unit of output {Blank}. A. rises; rises B. falls; falls C. rises; falls D. falls; doesn't change
- The additional output produced by a firm as a result of hiring another worker is called the marginal product of labor. The amount by which a firm's revenue will increase as a result of hiring one more
- For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $7 and a marginal cost of $10. It follows that the: a. Production of the 100th unit of output increases the firm's profit by $3, b. Production of the 100th unit
- In the short run when the marginal product of labor _____, the marginal cost of an additional unit of output _____.
- When a firm hires 10 units of labor, 20 pens are produced. When it hires another unit of labor, the total output increases to 23 pens. If the price of one pen is $2, the value of the marginal product of the eleventh unit of labor is [{Blank}]. a. $6 b.
- The production function for a product is given by q = K1/2L1/4 where K is capital, L is labor and q is output. a. Find the marginal products of labor and capital. b. Is the marginal product of labor increasing or decreasing with labor? Is the marginal p
- a. If the input price decreases from $2.00 to $1.50, what is the new per unit cost of production? b. Suppose that instead of the input price decreasing, the productivity had increased by 25%. What will be the new unit cost of production?
- The marginal product of capital is the increase in: A. the number of machines when one more unit of capital is added. B. output when one more unit of capital is added. C. employment when one more unit of capital is added. D. unemployment when one more uni
- The additional production resulting from hiring one more worker is: A. marginal physical product. B. marginal cost. C. additional production. D. marginal production.
- With capital fixed at one unit with 1, 2, 3 units of labor added in equal successive units, production of the output increases from 300 (1 unit of labor), to 350 (2 units of labor) to 375 (3 units of labor). Which of the following is a correct interpretat
- If the marginal product of labor is 3, the marginal product of capital is 4, the wage rate is $4.50, the rental price of capital is $6, and the price of output is $1.50, then the firm should: A. increase output by hiring more labor, more capital, or both
- If the marginal product of labor is 2, the marginal product of capital is 4, the wage rate is $3, the rental price of capital is $6, and the price of output is $1.50, then the firm should: a. increase output by hiring more labor, more capital, or both. b.
- A firm increases the number of workers it hires from 50 to 52, and as a result, output increases from 100 to 110. Each of the additional units of output can be sold for $2. What is the marginal revenue product of the 52nd worker? A. 2 B. 5 C. 10 D. 20 E.
- The principle of diminishing returns doesn't apply to labor in the long run because: a. a firm can build an additional production facility, so each worker's share of the facility doesn't necessarily decrease. b. eventually the marginal product of labor wi
- Labor productivity is defined as: a. the amount of input per worker. b. the increase in output per unit of machinery. c. the amount of output per worker. d. the amount of workers per unit of input.
- This firm has a wage of $100 per worker, according to the following output schedule, the marginal cost when the firm is producing 15 units. Marginal cost is Labor Output 1 5 2 15 3 20 4 24
- When a perfectly competitive firm employs one worker, it produces 20 units of output. When the same firm employs two workers, it produces 39 units of output. The firm sells its product for $10 per unit. What is the marginal revenue product connected with
- The marginal product of labor (MP) is A) total output divided by the number of workers employed B) the change in total output attributed to employing an additional worker C) the change in total output attributed to producing an extra unit of a good D) to
- Suppose that capital costs $10 per unit and labour costs $4 per unit. If the marginal product of capital is 50 and the marginal product of labour is 50, then in the long run the firm should in order to minimize its costs of producing its output. A) emplo
- The addition to total costs associated with the production of one more unit of output is referred to as A. average cost. B. marginal cost. C. opportunity cost. D. overhead cost.
- The marginal product of capital {Blank} as additional units of capital are added, holding the labor force constant, causing the production function to become {Blank}. A. increases; steeper B. increases; flatter C. decreases; steeper D. decreases; flatter
- The graph below shows the marginal revenue product of labor. a. How many units of labor will the firm hire at a wage of $3? b. What is the marginal revenue product of the 3rd unit of labor? c. Diminishing marginal product begins with the addition of what
- A firm is currently producing 200 units of output using 60 hours of labor and 80 hours of capital. The marginal product of labor is 12 units of output per hour, and the marginal product of capital is 15 units of output per hour. If the wage rate is $6 per
- A firm has production function f(L,K)=2L+4K. Then, if the firm substitutes 2 units of labor WITH one unit of capital? a. Production increases b. The Marginal product of labor decreases c. The Marg
- The production function: a. is an economic relationship between revenue and cost. b. always shows increasing marginal product of labor. c. shows the relationship between input prices and amount of input used. d. shows the maximum level of output for a giv
- Suppose that hiring one more worker increases output by 10 units. Hiring that worker costs $10. One more unit of capital increases output by 30 units, but costs $15. How should this firm change their input mix? A. It should hire more labor. B. It should h
- A firm's marginal cost of production is the: a. change in total variable cost that results from producing each additional unit of output. b. change in total cost that results from producing each additional unit of output. c. change in total fixed cost tha
- The law of diminishing marginal product of labor is demonstrated by which of the following? a. Total output declines as you increase the quantity of labor. b. Total output increases only when you increase both labor and ovens. c. Total output increa
- For a certain firm, the 100th unit of output that the firm produces has a revenue of $7 and a marginal cost of $10. It follows that the a. Production of the 100th unit of output increases the firms profit but $3, b. Production of the 100th unit of output
- Marginal physical product of labor measures the _____. a. quantity of output produces by hiring workers b. change in output generated by hiring an additional worker c. change in revenue generated by hiring an additional worker d. change in cost generate
- Marginal product is: a. the change in total product divided by the change in the quantity of labor b. total product divided by the quantity of labor c. always positive d. unrelated to total product
- Increasing marginal returns to labor: a. occur only when there are increasing marginal returns to capital. b. are the result of specialization and division of labor in the production process. c. describe the portion of a total product curve where the marg
- We often observe that addition of another unit of labor increases output but by an amount that is smaller than the addition of the previous unit of labor. In such a situation the producer is experiencing: A. diminishing labor. B. diminishing output. C. di
- Suppose a firm increases the quantity of labour employed from 5 to 6 workers and total output increases from 100 units to 400 units. The marginal product of the sixth worker is? A) 50 units. B) 100 units. C) 200 units. D) 300 units. E) 66.67 units.
- Marginal physical product of labor measures the: a. quantity of output produced by hiring workers. b. change in output generated by hiring an additional worker. c. change in revenue generated by hiring an additional worker. d. change in cost generated b
- If a firm's marginal product of labor is less than its average product of labor, then an increase in the quantity of labor it employs definitely will A. not change its average product of labor. B. decrease its average product of labor. C. increase its mar
- If each extra worker produces an extra unit of output, how do the total product of labor, the average product of labor, and the marginal product of labor vary with the number of workers?
- The law of diminishing marginal returns states that a. as additional units of labor are added to a fixed quantity of another resource, there is some output level beyond which total output will begin to diminish. b. as additional units of labor are added
- When 4 units of labor are employed, total product is 6 units; when 5 units of labor are employed, total product is 9 units of output. If the price of output is $5 per unit, what is the marginal reven
- Diminishing marginal returns occur when A. all inputs are increased and output decreases. B. all inputs are increased and output increases by a smaller proportion. C. a variable unit is increased and its marginal product falls. D. a variable input is incr
- The Law of Diminishing marginal returns starts with the addition of the: a) Third unit of labor, b) Fourth unit of labor, c) First unit of labor, d) Second unit of labor. |Input|Total product |0|0 |1|5 |2|20 |3|32 |4|42 |5|50 |6|55 |7|58 |8|58 |9|56
- The change in total output resulting from a 1-unit increase in the quantity of a factor of production used, holding the quantities of all other factors of production constant, is: a) average cost. b) average product. c) marginal cost. d) marginal product.
- Labor productivity and the price of the good being produced are two variables that contribute to: a. whether or not a union forms. b. the marginal product. c. the demand for the product. e. the wage rate.
- Labor productivity and the price of the good being produced are two variables that contribute to: a. whether or not a union forms. b. the marginal product. c. the demand for the product. d. the wage rate.