Answer the following questions true (T) or false (F)
1. The marginal value product for labor is equal to the marginal physical product for labor times the product price.
2. Average variable costs is equal to the firm's total variable costs divided by its total output.
3. An example of average physical product in agriculture is the yield or number of bushels of corn produced per acre.
1. TRUE
2. TRUE
3. TRUE
You might also like to view...
An effluent fee is imposed on a steel firm to reduce the amount of waste materials that it dumps in a river. Use the following two statements to answer this question:
I. The more easily factors of production can be substituted for one another (for example, capital can be used to reduce waste water), the more effective the fee will be in reducing effluent. II. The greater the degree of substitution of capital for waste water, the less the firm will have to pay in effluent fees. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
If the U.S. government decides to increase military spending, one opportunity cost will be lower spending on education
a. True b. False Indicate whether the statement is true or false