Decreasing marginal returns occur in the short run as more labor is hired to work in fixed sized plant because A) the entrepreneur does not know how to manage more workers. B) adding more workers overcrowds the factory's buildings and machinery C) less efficient and less productive workers have to be hired D) each worker will produce more than the worker previously hired.

Decreasing marginal returns occur in the short run as more labor is hired to work in fixed sized plant because A) the entrepreneur does not know how to manage more workers. B) adding more workers overcrowds the factory's buildings and machinery C) less efficient and less productive workers have to be hired D) each worker will produce more than the worker previously hired.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 3SQ

See similar textbooks

Similar questions

Each of the following examples reflect some labour cost faced by an employer. Select all of those which are considered quasi-fixed labour costs. Select one or more: a. Harpreet spent $1,000 advertising a recent job opening b. Denise pays her entry-level employees an hourly wage of $20 c. John recently laid off five workers and gave them each $20,000 in severance pay d. Ahmed's sales employees earn an average annual commission of $50,000 e. Amanda spends $5,000 per year on supplemental health insurance for each of her employees
What is the Marginal Cost (MC) for the 40th unit of output? Quantity of Labor Total Output 0 1 2 0 3.33 -5 5 3 4 56 6- 0 16 40 60 72 80 84 Fixed Cost $160 Variable Cost . $80 $160 $240 $320 $400 $480 Total Cost
a software production firm, average product has started falling and total output indicated diminishing trend. The production manager Mr. Yahya called you and asked you to see the condition of marginal product. You analyzed the situation and reported that marginal product falling more than average product. Mr. Yahya got surprised. In your opinion which situation the firm is heading to?
a) Graph the TP, MP and AP data below. Clearly identify the 3 stages of production by drawing dotted lines vertically at the appropriate labor levels (increasing returns, decreasing returns, negative returns). product
Which of the following factors will cause the demand curve for labor to shift to the right? (a) the demand for the product by labor declines. (b) the prices of substitute inputs fall. (c) the productivity of labor increases. (d) the wage rate declines. (e) None of the above.
The local ice cream shop is trying to figure out how many workers to hire, and part of the decision will be based on the marginal product of labor. The following table shows a short-run production function for quantity of ice cream tubs produced. Diminishing marginal returns begins after hiring which worker? Workers hired Quantity of ice cream tubs produced 1 110 2 200 3 270 4 300 5 320 16 330 300 Seventh Sixth Second Fourth
What is a production function? Response option group It is the production technology It is the relationship between inputs and the level of production It is the average product It is the marginal product
As a firm hires more workers, holding capital and other factors constant, the marginal physical product of labor(MPPL) declines because a) the amount of other inputs each worker has to work with declines as the number of workers increases. b) less efficient workers are hired as the number of workers increase. c) there are diseconomies of scale. d) workers don't perform well in teams.
If a cost-minimization firm’s marginal product of labor equals 1 ton of output, while the marginal product of capital equals 7 tons of output and the cost of capital is $14 per unit, then A. The cost of labor must be $1/7 B. The cost of labor (wage rate) must be $2 C. The cost of labor must be $7 D. The cost of labor must be $14 as well
The following is output data for a firm. Assume that the amounts of all non-labour resources are fixed. Number of Units of workers output 0 0 1 40 2 90 3 126 4 150 5 165 6 180 Refer to the above information. Diminishing returns become evident with the addition of: the fourth worker. the third worker. the second worker. the first worker.
Complete the missing parts in the table Working hours (input) Wage Yield in lb. (TPP) Price of basil Total Fixed Cost (TFC) TVC (Total Variable Cost) TC (Total Cost) TR (Total Revnue) AVC (Average variable Cost) ATC (Average Total Cost) MC (Marginal Cost) MR (Marginal Revenue) 0 $28 0 $14.0 10 $28 32 $14.0 20 $28 68 $14.0 30 $28 108 $14.0 40 $28 144 $14.0 50 $28 176 $14.0 60 $28 196 $14.0 70 $28 212 $14.0 80 $28 216 $14.0 90 $28 218 $14.0 100 $28 214 $14.0 110 $28 204 $14.0…
Question 2 A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000.00. the cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company’s cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? Timothy quits his job which pays $84000 a year, to enrol in a 2-year graduate programme. His annual school expenses are $58000 for tuition, $9500 for books and 3600 for food. What is his opportunity cost of attending the graduate program? A motor vehicle assembly plant requires the use of both capital and labour. the telsa manufacturing plant is considering increasing the number of workers to increase production. Does diminishing returns hold in this scenario yes/no? explain. Explain how each of the following situations would affect…