Figure 17.1 depicts a firm's marginal revenue product curve. Why does the marginal revenue product of labor decrease faster as the firm increases its use of labor by 10 hours?
A. Because the marginal product of labor decreases at an increasing rate.
B. Because the marginal product of labor decreases at a decreasing rate.
C. Because the marginal product of labor increases at an increasing rate.
D. Because the marginal product of labor increases at a decreasing rate.
Answer: A
Economics
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Generally, specialization leads to
A) constant opportunity costs. B) greater productivity. C) reductions in people's skill levels. D) greater self-reliance.
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If marginal utility is a positive number,
A. the more you purchase, the more total utility you get. B. the more you purchase, the less total utility you get. C. utility is not affected by more purchases. D. then you are as well off as possible.
Economics