4) The value of marginal product of labor curve A) is upward sloping because fir

Question

4) The value of marginal product of labor curve A) is upward sloping because firms want to hire more workers to increase production. B) is downward sloping if each additional worker's marginal product is decreasing. C) shows the price of a factor of production multiplied by the amount of the factor employed. D) is U-shaped. E) is the same as a firm's supply of labor curve.

5) As the price of land rises, the quantity supplied A) at first increases and then decreases. B) decreases. C) stays the same. D) increases. E) at first decreases and then increases.

6) Which of the following is true? A) The value to a firm of hiring another worker is the worker's value of marginal product. B) The value of marginal product equals the price of the good produced divided by the marginal product. C) The value of marginal product is the cost of hiring a worker. D) The value of marginal product increases as more workers are hired. E) A firm will hire more workers if the wage rate is greater than the value of marginal product.

Explanation / Answer

(4) The correct answer is option (C). The value of marginal product of labor curve shows the price of a factor of production multiplied by the amount of the factor employed.

(5) The correct answer is option (C). As the price of land rises, the quantity supplied stays the same.

(6) The correct answer is option (E). A firm will hire more workers if the wage rate is greater than the value of marginal product.

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