All else constant, an increase in productivity has the effect of causing:
A) the marginal product of labor to increase and no effect on the average product of labor.
B) the average product of labor to increase and no effect on the marginal product of labor.
C) the marginal product of labor to increase and the average product of labor to decrease.
D) both the marginal and average product of labor to increase.
D
You might also like to view...
For this question, assume that the Fed sets monetary policy according to the Taylor rule. Suppose current U.S. macroeconomic conditions are represented by the following: ? = ??* and u > un. Given this information, we would expect that the Fed will
A) implement a monetary contraction. B) implement a monetary expansion. C) maintain its current stance of monetary policy. D) more information is need to answer this question.
When a firm is operating in a price-taker market, marginal revenue is
a. equal to price. b. always less than price. c. equal to zero when the market is in long-run equilibrium. d. equal to the change in output divided by the change in total revenue.