The marginal product of labor is the change in _____; and the marginal cost is the change in...
Question:
The marginal product of labor is the change in _____; and the marginal cost is the change in _____.
A) average product from employing one more worker; average cost from employing one more worker
B) total revenue from employing one more worker; total cost from employing one more worker
C) total output from employing one more unit of capital; total cost from employing one more unit of capital
D) total cost from employing one more worker; total cost from producing one more unit of output
E) total output from employing one more worker; total cost from producing one more unit of output
Marginal Analysis:
The study of marginal decision making was one the great breakthroughs in economics. It allowed us to model how rational parties such as firms and individuals make decisions which helps us understand how the overall economy works better.
Answer and Explanation: 1
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View this answerAnswer: E
The world marginal simply measures the change in whatever is being described by increasing inputs by one unit. Marginal cost thus measures...
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Marginal Analysis in Economics: Definition, Formula & Examples
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- Suppose a firm is hiring 20 workers at a wage rate of $60. The average product of labor is 30, the last worker added 12 units of output, and the total fixed cost is $3,600. a) The average total cost is $ [{Blank}], b) The marginal cost of the last unit
- Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $250. The average physical product of labor is 25, the last worker added 10 units to total output, and the total cost is $5,000.What is the marginal cost?
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- A firm's marginal cost is the increase in its total cost divided by the increase in its A. output. B. average cost. C. average revenue. D. quantity of labor.
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- Marginal cost is defined as the: a. change in variable costs divided by the change in the number of workers. b. change in variable costs divided by total product. c. change in variable costs divided by the change in total product. d. change in variable
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- The labor demand curve is based on the firm's: a. average cost curve. b. marginal cost curve. c. average revenue curve. d. marginal revenue product curve. e. marginal product curve.
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- A profit-maximizing firm will employ more workers until the: a. value of the marginal product of labor is less than wage. b. marginal product of labor is zero. c. value of the marginal product of labor equals wage. d. marginal revenue is zero.
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- A firm will go out of business if the price is below: A. marginal cost B. marginal revenue C. average total cost D. average fixed cost
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- The marginal revenue product of labor curve is the firm's: a. Total revenue curve. b. Labor demand curve. c. Labor supply curve. d. MPP of labor curve divided by the wage rate.
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- "Diminishing marginal returns" refer to a situation in which the A. average cost of the last worker hired is less than the average cost of the previous worker hired. B. marginal cost of the last worker hired is less than the marginal cost of the previous
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- The change in total cost from producing another unit of output equals the A. marginal cost. B. variable cost. C. average total cost. D. average variable cost.
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- Marginal revenue is defined as _____. a. change in total revenue divided by change in marginal cost b. total revenue divided by output c. change in total revenue divided by change in output d. total revenue minus total cost
- Marginal cost can be expressed as the ratio of the price of labor and the marginal product of labor: a. Only when labor is held constant, b. Only when labor is the only variable input, c. Whether labor is held constant or not, d. If all factors are variab
- If the of labor is increased, ceteris paribus, eventually the will. a. price; supply of labor; increase b. quantity; marginal product of labor; fall c. quantity; marginal product of labor; rise d. quantity; marginal revenue product of labor, rise
- If the marginal product of labor (MPL) increases when more labor is employed, then A. the marginal cost (MC) increases when output increases. B. the marginal cost (MC) does not change when output increases. C. the marginal cost (MC) decreases when output
- When the labor market is not perfectly competitive, labor will be hired up to the point where the {Blank} of labor equals the {Blank}. A. marginal revenue product; marginal revenue B. marginal product; market wage C. marginal revenue product; marginal
- Calculate the marginal revenue product of labor, the marginal revenue product of capital, the ratio of the marginal revenue product of labor to the price of labor, and the ratio of the marginal produc
- For a monopolist, marginal revenue is less than price, which means that profit maximisation will result in (blank) also being less than price. (a) average revenue (b) marginal cost (c) total revenue (d) total cost (e) average cost
- 1. To maximize profits, a firm will employ workers until for the last worker employed: a. marginal product of labor is equal to the nominal wage rate. b. the value of the marginal product of labor i
- To maximize profits, a monopolist will hire the quantity of labor at which marginal revenue product of labor: a. is downward sloping and equal to the market wage rate. b. is downward sloping and equal to marginal labor cost. c. minus marginal labor cost
- Total revenue divided by output equals: a. average variable cost b. marginal cost c. price d. average total cost
- At the level of output where marginal revenue equals marginal cost, assume that the price of a competitive firm's product is between the firm's average total cost curve and its average variable cost curve. In this case, the firm would: a) decrease output
- A monopolistic competitor is currently producing 2,000 units of output; price is $100, marginal revenue is $80, average total cost is $130, marginal cost is $60, and average variable cost is $60. The firm should: a) Raise price because the firm is losing
- The marginal cost curve intersects the average variable cost curve at the level of output where average variable cost is at a minimum because: A. the firm begins benefiting from division of labor at this quantity. B. when the marginal cost of the last un
- Average fixed cost plus average variable cost equals A. marginal cost. B. total cost. C. average total cost. D. total variable cost. E. marginal fixed cost.
- A monopolistically competitive firm will increase its production if a. marginal revenue is greater than marginal cost. b. marginal revenue is greater than average total cost. c. price is greater than marginal cost. d. price is greater than average total c
- A profit-maximizing firm in a competitive market will always make marginal adjustments to production as long as: a. Average revenue is greater than average total cost, b. Average revenue is equal to marginal cost, c. Marginal cost is greater than the aver
- Marginal cost is the slope of the: a. variable cost. b. total product curve. c. marginal product curve. d. average cost curve.
- Average total costs are defined as (a) total costs divided by the change in output. (b) total costs divided by output. (c) the change in total costs when output changes. (d) average variable costs plus marginal costs.
- If the marginal costs increase (due to falling marginal product of a variable input), how does this change average (total) costs? How about average variable costs?
- Total cost is the sum of _______. (a) fixed and variable costs (b) marginal costs and marginal product (c) fixed costs and marginal product (d) marginal costs and income tax costs.
- When the marginal product of labour is greater than the average product of labour,: a) the firm is experiencing constant returns. b) the total product curve is negatively sloped. c) the firm is experiencing diminishing marginal returns. d) the average pro
- If marginal cost is between average variable cost and average total cost, then: a. both average variable cost and average total cost are increasing. b. both average variable cost and average total cost are decreasing. c. average variable cost is increasin
- The change in total cost when one more unit of a factor of production is added is: A ) marginal revenue product. B ) marginal product. C ) marginal cost. D ) marginal factor cost.
- Marginal cost is the slope of the: a. variable cost curve. b. total product curve. c. marginal product curve. d. average cost curve.
- If the marginal cost of production is smaller than the average total cost, does this tell you whether the average total cost is increasing or decreasing? What if the marginal cost is equal to the aver
- If price is greater than marginal cost but not average total cost, then: a. the firm is experiencing diminishing marginal utility. b. the firm is earning a profit. c. total revenues are greater than t
- The decrease(s) as the firm increases production. a. explicit costs b. implicit costs c. fixed cost d. variable cost e. average fixed cost f. average total cost g. marginal cost h. diminishing marginal product of labor i. increasing marginal product of la
- If average variable costs are increasing while average total costs are decreasing, then A) marginal cost must lie between average variable and average total costs. B) marginal cost must equal average variable cost. C) marginal cost must equal average tota
- If average variable costs are increasing while average total costs are decreasing, then A) marginal cost must lie between average variable and average total costs. B) marginal cost must equal average variable cost. C) marginal cost must equal the avera
- If the marginal product of labor for a firm decreases as more workers are hired, we know that: (a) all workers are paid the same wage. (b) the marginal cost of producing output is decreasing. (c) the gains from specialization are exhausted. (d) the margin
- Marginal cost equals: (i) Change in total cost divided by change in quantity produced. (ii) Change in variable cost divided by change in quantity produced. (iii) The average fixed cost of the current unit. a. (i) and (ii), b. (ii) and (iii), c. (ii) only,
- At the level of output where marginal revenue equals marginal cost, price is less than average total cost but greater than average variable cost. In this instance, a profit-maximizing firm should: a.
- In the monopsony model, at the profit-maximizing level of employment of a category of labor: a. marginal revenue product of labor is greater than marginal cost of labor b. marginal revenue product of labor is less than marginal cost of labor c. marginal r
- Marginal costs can be defined as: a. Total costs divided by the quantity of the good produced. b. The change in fixed costs divided by the change in the quantity of the good produced. c. The change in total costs divided by the change in the quantity o
- An efficiency wage is a wage that: A. equates marginal cost with marginal revenue. B. is paid only to workers if they are efficient. C. is the lowest possible wage to attract workers to a job. D. is higher than average in the labor market.
- If a firm is maximizing profit and the marginal revenue product of labor is $10 and the marginal revenue product of capital is $30, then a. the marginal resource cost of labor is $3, and the marginal
- A perfectly competitive employer hires labor up to the point where: A. Wage = Marginal factor cost. B. Wage = Marginal product of labor. C. Wage = Marginal revenue. D. Wage = Marginal revenue product of labor. E. Wage = Price of the good produced by the l
- A company has fixed costs of $300 and each worker it hires costs $100 per day. Calculate Marginal product, Total cost, Average total cost, and Marginal cost for each level of output in the table below. ||Workers||Output (Q)||Marginal product||Total cost||
- If marginal cost less than average total cost, for higher output level _____. a. both average total cost and average variable cost must be falling. b. average total cost must be falling but average variable cost may be rising or falling. c. marginal cost
- The sum of fixed cost and variable cost at any rate of output is equal to: a. Average total cost. b. Total profit. c. Total cost. d. Marginal cost.
- If average variable costs are increasing while average total costs are decreasing, then A) marginal cost must lie between average variable and average total costs. B) marginal cost must equal averag
- Average total cost is increasing whenever: A. total cost is increasing B. marginal cost is greater than average total cost C. marginal cost is increasing D. marginal cost is less than average total cost
- If the extra output that is produced by hiring one more unit of labor adds more to than to, the firm will increase its profit by increasing the use of labor. a. marginal product; marginal cost b. total cost; total revenue c. total revenue; total cost d. m
- A monopolistic competitor is producing a level of output at which price is $200, marginal revenue is $100, average total cost is $210, marginal cost is $100, and average variable cost is $180. In order to maximize profit, the firm should: a) keep output t
- If the marginal product curve is intersecting the average product curve, we know that a. The average total cost curve lies below the marginal cost curve. b. The average variable cost curve is intersec
- The profit-maximizing rule for a competitive firm is to hire labor until: a. Marginal revenue = Wage, b. Price = Wage, c. Marginal product of labor = Wage, d. Value of marginal product of labor = Wage.
- The total cost of production equals ___. a. average total cost + average variable cost b. average total cost + average fixed cost c. average variable cost + average fixed cost d. total fixed cost + total variable cost e. marginal cost + total variable
- When a firm is experiencing diseconomies of scale, long-run: a. average total cost is minimized, b. average total cost is greater than the long-run marginal cost, c. average total cost is less than the long-run marginal cost, d. marginal cost is minimi
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