average revenue product marginal physical product average physical product Correct! marginal revenue product Question 8 0 / 0 pts As a firm buys more capital and less labor, the marginal physical product of capital __________ and the marginal physical product of labor __________, assuming the law of diminishing marginal returns has set in for each factor. Correct! decreases; increases remains constant; decreases decreases; decreases increases; increases
increases; remains constant Question 9 0 / 0 pts The lower the elasticity of demand for a product, none of these options. the higher the elasticity of demand for the labor that produces the product. the higher the ratio of labor costs to total costs. the lower the ratio of labor costs to total costs. Correct! the lower the elasticity of demand for the labor that produces the product. Question 10 0 / 0 pts Units of Labor Quantity of Output Marginal Revenue 0 0 $5 1 500 $5 2 900 $5 3 1150 $5 4 1350 $5 5 1530 $5 Refer to Exhibit 26-5. The data illustrate that the firm in question is a You Answered
price searcher (monopolist, oligopolist, etc.). factor price taker. factor price searcher. Correct Answer price taker (perfectly competitive firm).
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