The additional tomato production resulting from hiring one more tomato worker is
ID: 1231552 • Letter: T
Question
The additional tomato production resulting from hiring one more tomato worker is:a. Marginal cost
b. Marginal revenue
c. Marginal physical product
d. Marginal revenue product
38. You are given the following information about a firm’s present output position:
Marginal Physical Product (MPP) of Land = 2
MPP of Labor = 5
Price of Land = $2
Price of Labor = $4. Assume any changes keep these same ratios. With no additional money to spend, this firm should:
a. Increase expenditures for Land and reduce expenditures for Labor
b. Decrease expenditures for Land and increase expenditures for Labor
c. Remain in the current position, since its output is maximized
39. The Marginal Revenue Product of a factor of production is
a. The addition to total physical product resulting from the use of one additional unit of that factor of production
b. The average contribution of that factor to total production
c. The addition to total revenue resulting from the use of one additional unit of that factor in production
d. Derived by dividing total production by the average revenue contributed by each factor of production
40. A firm achieves its Least-Cost position in production by substituting factors until
a. The prices of each input factor of production are equal
b. The Marginal Physical Product (MPP) of each factor is equal
c. The MPP/Price of each factor is equal
d. The MRP of each factor is equal
41. In classifying market structures, which of the following is least useful:
a. Knowing the number of employees in each firm
b. Knowing the existing barriers to entry
c. Knowing the nature of the firm’s demand curve
d. Knowing the firms’ marginal revenue and marginal cost
42. The extra cost of one more unit of output is called
a. Marginal Physical Product
b. Marginal revenue Product
c. Average Variable Cost
d. Marginal Cost
43. Of the following, the best reason why individuals with greater ability receive higher wages is that they:
a. Have lower marginal products
b. Have higher marginal revenue products
c. Face diminishing marginal returns
d. Often are employed in industries experiencing economies of scale
44. Since the demand for labor depends upon the demand for the final product, we say that labor is:
a. An “inverse” demand
b. A positive demand
c. A Derived demand
d. A competitive demand
Explanation / Answer
37: D) Marginal Revenue Product (this is just a definition question) 38: B) Decrease expenditures for Land and increase expenditures for Labor Basically, MPP(land) / P(land) should always equal, say, MPP(labor) / P(labor). However, when you plug in the numbers, the ratio is 1 for land and 1.25 for labor. So increase labor expenditures to lower the ratio, or decrease land expenditures to raise the ratio. Both work. 39: C) The addition to total revenue resulting from the use of one additional unit of that factor in production (this is kind of like #37) 40: C) The MPP/Price of each factor is equal (and this is kind of like #38) 41: A) Knowing the number of employees in each firm 42: D) Marginal Cost (incremental cost may be acceptable too, but it's not an option) 43: B) Have higher marginal revenue products (?) This is the only one I'm not sure of, but I think it makes the most sense to me. 44: C) A derived demand (just definition)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.