If an industry is characterized by substantial diseconomies of scale, as a particular firm in the industry expands its production capacity we will observe:
A) a decrease in marginal costs.
B) an increase in the marginal product of labor.
C) a decrease in the total fixed costs of production.
D) an increase in the average total costs of production.
D
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Refer to the scenario above. Which of the following will happen if Mike starts charging $30 for mowing lawns that were earlier mowed by their owners?
A) Per capita income will remain unchanged B) GDP will increase. C) GDP will decrease D) Per capita income will decrease. Edwin grows potatoes on his farm. A part of the output is consumed by Edwin's family and Edwin sells the remaining in the market.
All of the following statements regarding the marginal revenue product (MRP) curve and the demand for labor are true EXCEPT
A) an individual firm's demand for labor is its MRP curve. B) under conditions of perfect competition, MRP equals marginal physical product multiplied by the product's price. C) an increase in the market demand for a given product decreases the product's price. D) the demand for labor is a derived demand.