The marginal product of labor is the
a. cost of one worker
b. average output per worker
c. change in revenue from selling one more unit of output
d. change in revenue from using one more unit of labor
e. change in output from using one more unit of labor
QUESTION 2Which of the following is true of marginal product?
a. The firm should produce where marginal product is greatest.
b. The firm should produce where marginal product is increasing.
c. When marginal product is falling, total product is falling.
d. The firm should produce where marginal product is zero.
e. When marginal product is increasing, total product is increasing by increasing amounts.
QUESTION 3At the point where diminishing marginal returns set in, the slope of the total product curve is
a. positive and increasing
b. positive and decreasing
c. negative and increasing
d. negative and decreasing
e. constant
QUESTION 4In the range of increasing marginal returns, total product is
a. increasing at a constant rate
b. increasing at an increasing rate
c. increasing at a decreasing rate
d. decreasing at an increasing rate
e. decreasing at a decreasing rate
QUESTION 5When diminishing marginal returns set in, marginal product is
a. positive and increasing
b. positive and decreasing
c. negative and increasing
d. negative and decreasing
e. zero
QUESTION 6When diminishing marginal returns set in, total product
a. is negative
b. decreases at an increasing rate
c. decreases at a decreasing rate
d. increases at an increasing rate
e. increases at a decreasing rate
QUESTION 7If the marginal product of an input is negative, the total product must also be negative.
a. True
b. False
QUESTION 8When marginal product is negative, the slope of the total product curve must be negative.
a. True
b. False
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