When there is technological advancement,
a) the price of output decreases
b) the value of marginal product of labour increases
c) labour supply increases
d) labour demand decreases
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Average Product
Ten units of labour are hired and the resulting average product is 50 units.
Average and Marginal Product
If a firm is at a point where MP=8 and AP=5 then an increase in one unit of labour will
If a firm is at a point where MP=3 and AP=5 then
Which of the following about average product and marginal product is always true?
Numbers listed are units of output for each combination of labour and plant size
If this firm is in short run and has plant size 4, what is its average product of labour when it employs 5 units of labour?
As the quantity of labour employed increases,
When 4 units of labour are hired, total output is
Practice: Marginal Product
John makes 2 pizzas and then we add Eric and he makes 1 pizza. Each of them is paid $10.
Which of the following are always true? (more than one answer can be true!)
Marginal product and average product curves will shift up if
a) When 5 units of labour are employed, the marginal product is ________
b) ___True___False marginal product is constant for all levels of labour. ________
c) When 8 units of labour are employed, the average product is ________
Use the chart above to answer the following questions
If the firm changes from 4 units of labour and 2 plants to 5 units of labour and 4 plants, the average product per unit of labour
Practice: Marginal vs Average Product
Which of the following statements about the relationship between marginal product and the average product is correct?
When marginal product is rising, which of the following is true?
Your business has 15 units of labor and the current output of milkshakes is 150 units. You hire one more unit of labor and the output increases to 155 milkshakes. What will happen?
At a level of output, the price of output is $20, the marginal product of labour is $240, and the wage is $12. The firm in this question
What's the most probable reason explaining the MRP curve moving from MRPA to MRPB?
The price of a firm's output is $10. Its wage is $30 and its marginal revenue product is $2. Which statement is true?
A backpack company in a competitive market sells its bags for $45 per bag and hires units of labor at a rate of $15 per hour. If they want to maximize their profits, they should hire units of labor until the marginal product of labor is
The demand curve for labour shifts when there is a change in