Marginal revenue product falls as more labor is hired because A the marginal

Marginal revenue product falls as more labor is hired

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21) Marginal revenue product falls as more labor is hired because A) the marginal product of labor falls as a result of the law of diminishing returns.B) the marginal product of labor is negative as additional units of labor are hired.C) the wage rate rises as more workers work more hours.D) the price of the product must fall for a perfectly competitive firm to sell more.Answer: A21)Diff: 2Page Ref: 547/547Topic: Marginal Revenue Product of LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Reflective Thinking6
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Figure 17-1Figure 17-1 shows the marginal revenue product for Beccaʹs Baubles, a producer of hand-beaded bracelets. 22)Refer to Figure 17-1.If the wage rate is $20, how many workers should Becca hire? 22)Diff: 1Page Ref: 547/547Topic: The Demand for LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Analytic Skills 23)Refer to Figure 17-1.If Becca can sell her bracelets at $3 each, what is the marginal product of the4th worker? 23)Diff: 1Page Ref: 547/547Topic: Marginal Product of LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Analytic Skills 24)Refer to Figure 17-1.Suppose the market price of bracelets falls to $2. What happens to the curvegiven in the diagram? 24)Diff: 1Page Ref: 547/547Topic: Marginal Revenue Product of LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor markets AACSB: Analytic Skills 7
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