Diminishing marginal product of labor occurs when adding another unit of labor

Diminishing marginal product of labor occurs when

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42) Diminishing marginal product of labor occurs when adding another unit of laborA) changes output by an amount smaller than the output added by the previous unit of labor.B) decreases output.C) decreases output by an amount smaller than the output added by the previous unit of labor.D) increases output by an amount larger than the output added by the previous unit of labor.Answer: A42)Diff: 2Page Ref: 359/359Topic: Marginal Product of LaborLearning Outcome: Micro 20: Apply the concepts of opportunity cost, marginal analysis, and present value tomake decisionsAACSB: Reflective Thinking43) Increases in the marginal product of labor result from43)Diff: 1Page Ref: 359/359Topic: Marginal Product of LaborLearning Outcome: Micro 20: Apply the concepts of opportunity cost, marginal analysis, and present value tomake decisionsAACSB: Reflective Thinking44) Gertrude Storkʹs Chocolate Shoppe normally employs 4 workers. When the Chocolate Shoppehired a 5th worker the Shoppeʹs total output decreased. Therefore,44)Diff: 2Page Ref: 359/359Topic: Marginal Product of LaborLearning Outcome: Micro 20: Apply the concepts of opportunity cost, marginal analysis, and present value tomake decisionsAACSB: Reflective Thinking45) An avocado orchard employs five full-time workers. Currently, the average product of labor is 120pounds of avocados per day. The orchard hires a 6th full-time worker and his marginal product is150 pounds of avocados. The average product of the six workers will now be45)Diff: 2Page Ref: 361-362/361-362Topic: Average Product of LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Reflective Thinking12
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