3 Multiple Choice Questions

28. Marginal revenue product measures the:   (1 point)
a.  
amount by which the extra production of one more worker increases a firm's total revenue.
b.  
decline in product price that a firm must accept to sell the extra output of one more worker.
c.  
increase in total resource cost resulting from the hire of one extra unit of a resource.
d.  
increase in total revenue resulting from the production of one more unit of a product.

29. Marginal product is:   (1 point)
a.  
the output of the least skilled worker.
b.  
the amount an additional worker adds to the firm's total output.
c.  
a worker's output multiplied by the price at which each unit can be sold.
d.  
the amount any given worker contributes to the firm's total revenue.

30. Capital and labor:   (1 point)
a.  
are always complementary.
b.  
are always substitutable.
c.  
may be either complementary or substitutable.
d.  
are both normal inputs.

Attached file(s):

microeconomics.doc  View File