Logout Open In App
Open In App
Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Chapter 26: Problem 7

The added output for which one additional input of labor is responsible is its (LO3) a) marginal revenue product b) marginal physical product c) average revenue product d) average physical product

Short Answer

Expert verified
The correct answer for the added output for which one additional input of labor is responsible is b) marginal physical product.

Step by step solution

01

Introduction to terms

To solve this problem, it's essential to understand what each of these terms means: a) Marginal Revenue Product (MRP) is the additional revenue generated by employing one more unit of labor holding other factors constant. b) Marginal Physical Product (MPP) is the additional output produced by using one more unit of labor holding other factors constant. c) Average Revenue Product (ARP) is the total revenue generated by a unit of labor divided by the total number of labor units employed. d) Average Physical Product (APP) is the total output produced divided by the total number of labor units employed.
02

Identify the correct term

Since this exercise is focused on finding the added output for which one additional input of labor is responsible, the correct term should be the one that deals with the additional output produced by employing one more unit of labor. Among the given terms, marginal physical product (MPP) fits this description because it refers to the additional output produced by using one more unit of labor holding other factors constant. So, the correct answer is: b) marginal physical product

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Which statement is true? (LO1) a) Resources and final products are both measured by units of input. b) Resources and final products are both measured by units of output. c) Resources are measured by units of input, and final demand is measured by units of output. d) Resources are measured by units of output, and final products are measured by units of input.

Automation will raise the level of employment if the (LO5) a) output effect is equal to the substitution effect b) output effect is greater than the substitution effect c) substitution effect is greater than the output effect

The decline in washing machine prices in the \(1950 \mathrm{~s}\) led to an increase in the employment of women because the (LO5) a) output effect outweighed the substitution effect b) substitution effect outweighed the output effect c) substitution and output effects offset each other

Derived demand is the demand for (LO1) a) final goods and services b) resources c) final goods as well as services and resources d) neither final goods and services nor resources

Which statement is true? (LO2) a) Productivity is output per unit of input. b) Productivity is input per unit of output. c) Productivity is neither of the above.
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free