quiz 10 - 1. According to the concept of marginal...

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1. According to the concept of marginal productivity, as each new worker is added the value of the production created by that worker generates the wages for that worker. 2. A firm would operate for maximum profit where the MFC = MRP 3. The demand for labor by a competitive firm is more responsive to decreases in the price of labor (MFC) when compared to the case of an imperfectly competitive firm. 4. If the price of capital decreases, more capital will tend to be used and less labor, all other things remaining the same . 5. If part of an assembly for automobiles is automated, then demand for automobile workers will decrease . 6. The demand for workers is determined by the $$$ value that each worker adds to the MRP . 7. As the price for labor drops in a competitive firm, more labor resources are added when compared with the case of an imperfectly competitive firm. 8. If a decrease in the price of cars decreases the marginal revenue product of auto workers, then a decrease in the demand for their labor will occur. 9. If the price of labor increases, more capital will tend to be utilized to increase the productivity of each worker. 10. If as the price of capital equipment decreases, more units of the output product are sold (with decreases in product price), then more workers will be employed. 11. Marginal productivity theory assumes that a worker’s income is a function of the contribution of that worker to the value of the output. In business this is called the “value added ” approach . 12. If an increase in the price of cars increases the marginal revenue product of auto workers, then an increase in the demand for their labor will occur. 13. If one resource input such as labor increases the value of output more than an equal input from capital (on a cost basis), then more workers should be hired. (True ) 14. With a decrease in the price of labor the imperfectly competitive producer is likely to hire less labor than a competitive firm because the price of a product drops with increases in
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quiz 10 - 1. According to the concept of marginal...

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