Asked by Sherry Smith on May 09, 2024
Verified
Which statement is true?
A) Productivity is input per unit of output.
B) The MRP curve for the perfect competitor is steeper than the MRP curve for the imperfect competitor.
C) The firm will hire workers until the wage rate and the Marginal Physical Product (MPP) of the last worker hired are equal.
D) Relative to the U.S.economy,the Chinese economy is more labor intensive and less capital intensive.
Productivity
The efficiency of production of goods or services, expressed as the ratio of output to inputs used in the production process.
MRP Curve
A graphical representation showing the additional revenue a firm generates by hiring one more unit of labor, based on the concept of marginal revenue product.
Marginal Physical Product
The change in output that results from employing an additional unit of a particular input, holding all other inputs constant.
- Grasp the impact of changes in productivity on the Marginal Physical Product (MPP) and MRP.
- Familiarize oneself with the understanding of derived demand and its divergence from final demand.
Verified Answer
Learning Objectives
- Grasp the impact of changes in productivity on the Marginal Physical Product (MPP) and MRP.
- Familiarize oneself with the understanding of derived demand and its divergence from final demand.
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