Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

If a firm hires additional workers, ceteris paribus the marginal physical product of labour usually will a.increase, because larger firms are more efficient. b.decrease, because

If a firm hires additional workers, ceteris paribus the marginal physical product of labour usually will

a.increase, because larger firms are more efficient.

b.decrease, because new workers are likely to be less able than the previously hired ones

c.increase, because more workers can always get more work done.

d.decrease, because each worker now has less capital and other resources to work with.

The marginal physical product of labour declines as the number of workers increases because

a.of diseconomies of scale.

b.of the law of diminishing marginal returns

c.firms must lower prices for the final product when they want to sell more units.

d.firms hire the most efficient workers first and the least efficient workers last

As the wage rate rises, other things constant, firms will choose to employ

a.more workers.

b.fewer workers.

c.the same number of workers.

d.less capital.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics For Engineers And Scientists

Authors: William Navidi

4th Edition

73401331, 978-0073401331

Students also viewed these Economics questions