Microeconomics Chapter 11 Practice Questions and Answers Latest Update Graded A+
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Microeconomics
Institution
Microeconomics
Microeconomics Chapter 11 Practice Questions and Answers Latest Update Graded A+
The marginal product of labor is defined as - Answers the change in output that a firm produces as a result of hiring one more worker
Diminishing marginal product of labor occurs when adding another unit of labor - A...
Microeconomics Chapter 11 Practice Questions and Answers Latest Update Graded A+
The marginal product of labor is defined as - Answers the change in output that a firm produces as a
result of hiring one more worker
Diminishing marginal product of labor occurs when adding another unit of labor - Answers changes
output by an amount smaller than the output added by the previous unit of labor
Increases in the marginal product of labor result from - Answers the division of labor and specialization
Gertrude Stork's Chocolate Shoppe normally employs 4 workers. When the Chocolate Shoppe hired a
5th worker the Shoppe's total output decreased. Therefore, - Answers the marginal product of the 5th
worker is negative
) An avocado orchard employs five full-time workers. Currently, the average product of labor is 120
pounds of avocados per day. The orchard hires a 6th full-time worker and his marginal product is 150
pounds of avocados. The average product of the six workers will now be - Answers more than 120
pounds
The law of diminishing marginal returns - Answers applies only in the short run
In the short run, why does a production function eventually display diminishing returns to labor? -
Answers As the number of workers increases eventually the gains from the division of labor and
specialization are used up
The division of labor and specialization explain - Answers why the marginal product of labor rises as a
firm hires its first units of labor
Sam Lewis owns a firm in New York City's garment district. If Sam keeps adding workers to use the same
number of sewing machines, eventually the workplace will become so crowded that workers will get in
each other's way. At this point - Answers the marginal product of labor in Sam's business would be
negative and his total output would decrease.
In his book The Wealth of Nations, Adam Smith employed the example of a pin factory in order to
explain what economic concept? - Answers the division of labor
The total output produced by a firm divided by the quantity of workers employed by the firm is the
definition of - Answers the average product of labor.
) After Suzie, owner of Suzie's Sweet Shop, hires her 8th worker the average product of labor declines.
Which of the following statements must be true? - Answers The marginal product of the 8th worker is
less than the average product of labor before the 8th worker was hired.
Which of the following statements is true? - Answers The average product of labor is at its maximum
when the average product of labor equals the marginal product of labor.
) The marginal product of labor is calculated using the formula - Answers ΔQ/ΔL.
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