What does diminishing marginal product imply? The marginal cost of an extra worker is unchanged. The marginal cost of an extra worker is less than the previous worker's marginal cost. The marginal product of an extra worker is less than the previous worker's marginal product. The marginal product of an extra worker is greater than the previous worker's marginal product.

What does diminishing marginal product imply? The marginal cost of an extra worker is unchanged. The marginal cost of an extra worker is less than the previous worker's marginal cost. The marginal product of an extra worker is less than the previous worker's marginal product. The marginal product of an extra worker is greater than the previous worker's marginal product.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis

Section: Chapter Questions

Problem 8TY

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The marginal product of labor is the change in A) total cost from employing one more worker. B) total revenue from employing one more worker. C) total output from employing one more worker. D) total output divided by the change in cost from employing one more worker. E) average product from employing one more worker.
The marginal product of labor is A) output that does not meet quality specifications. B) total product divided by labor. C) the change in total product divided by the increase in labor. D) a measure of labor.
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If we have information about workers’ marginal products, then total and average product can be found by dividing marginal costs by the number of workers. multiplying the average marginal product times the number of workers. summing the marginal values to find the total, and multiplying it times the number of workers to get the average. summing the marginal values to find the total, and dividing it by the number of workers to get the average.
Say the marginal product of labour in production is 4 and the average product of labour is 7. Then, increasing the amount of labour used in production will lower the average product of labor. True False
What is the Value of Marginal Product of adding the first worker? Group of answer choices: $1,500 $1,400 $1,200 $1,300
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Nimbus Ltd. makes brooms and then sells them door to door. Here is the relationship between the number of workers and Nimbus’s output in a given day:Average Total Cost36Output0130270120451601907210220Marginal ProductTotal CostMarginal Costa. Calculate and fill in the column of marginal products. What pattern do you see? How might you explain it? Hints: show your calculations. b. A worker costs $150 per day, and the firm has fixed costs of $300. Use this information to calculate and fill in the column for total cost. Hints: show your calculations. c. Calculate and fill in the column for average total cost. (Recall that ATC=TC/Q.) What pattern do you see? Hints: show your calculations.