Question

Evaluate the following statements as true or false and provide your reasoning. [5 pts. each] When...

Evaluate the following statements as true or false and provide your reasoning. [5 pts. each]

When MPL is less than APL, APL will fall.

When MPL equals zero, APL will also equal zero.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:- When MPL is less than APL, APL will fall.

Correct Answer:- True

Reason:-  that average product is at a maximum when it equals marginal product. Prior to that point, average product is rising because marginal product is higher. After that point, just the opposite occurs, marginal product is below average product so average product is falling as the firm hires more labor.

Answer:- When MPL equals zero, APL will also equal zero.

Correct Answer:- False

Reason:- when the marginal product is equal to zero that the production function is at its maximum. Thereafter, since the marginal product is negative, the production function decreases with increases in the amount of labor hired by the firm.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Evaluate whether the following statements are true or false. Also, please provide your reasoning to support...
Evaluate whether the following statements are true or false. Also, please provide your reasoning to support your answer. Suppose that U.S. has an absolute advantage in the computer production compared to Germany, while Germany has an absolute advantage in the auto production compared to U.S. This implies that U.S. has a comparative advantage in the computer production and Germany has a comparative advantage in the auto production.
Evaluate the following statements as true or false. Provide your reasoning: a. A risk-averse person prefers...
Evaluate the following statements as true or false. Provide your reasoning: a. A risk-averse person prefers the expected utility of income of a risky bet to the utility of the expected income of the same bet. b. A risk-averse person would always take a sure $10 rather than a 10% chance at $100. c. A risk-averse person has an increasing marginal utility of income (or wealth).
Evaluate carefully each of the following statements; decide if they are True or False and provide...
Evaluate carefully each of the following statements; decide if they are True or False and provide a precise justification for your answer. Your mark will depend on the quality of your response. 1. An increase in the marginal tax rate increases the investment multiplier, while an increase in the marginal propensity to consume lowers it. 2. If consumers become thrifty, in the sense that they reduce their autonomous consumption, for example, this will end up lowering their saving. 3. The...
Evaluate each of the following statements (TRUE/FALSE) and provide a one-two sentence(s) long explanation for your...
Evaluate each of the following statements (TRUE/FALSE) and provide a one-two sentence(s) long explanation for your answer (graphs, charts, formulas, and short calculations can be used as an explanation, too). Keep in mind that a statement is false if there is at least one case when the argument does not hold. To receive full credit for each statement, both the answer and the explanation must be correct. A firm has purchased a new piece of equipment for $420,000. The equipment...
(6) Label each of the following statements as True or False. Provide justification for your response....
(6) Label each of the following statements as True or False. Provide justification for your response. (b) True/False The scalar λ is an eigenvalue of a square matrix A if and only if the equation (A − λIn)x = 0 has a nontrivial solution. (c) True/False If λ is an eigenvalue of a matrix A, then there is only one nonzero vector v with Av = λv. (d) True/False The eigenspace of an eigenvalue of an n × n matrix...
Indicate if the following statements are true or false. Explain your reasoning. A. If two stocks...
Indicate if the following statements are true or false. Explain your reasoning. A. If two stocks have the same beta they must also have the same standard deviation. B. The expected free cash flows of two all-equity firms, Firm A and Firm B, are the same. The expected return on the stock of Firm A is higher than the expected return on the stock of Firm B. Firm B is more valuable.
Answer true of false to each of the following. briefly explain your reasoning for each answer....
Answer true of false to each of the following. briefly explain your reasoning for each answer. a. All else equal, increasing the projected amount of accounts receivable in a financial forecast will increase external funding required. b. Estimates of external funding required based on cash flow forecasts are usually higher than estimates based on pro forma financial statements. c. An annual financial forecast for 2018 showing no external funding required assures a company that no cash shortfalls are likely to...
True or false questions with justification. Evaluate carefully each of the following statements; decide if they...
True or false questions with justification. Evaluate carefully each of the following statements; decide if they are True or False and provide a precise justification for your answer. Your mark will depend on the quality of your response. 1. An increase in the marginal tax rate increases the investment multiplier, while an increase in the marginal propensity to consume lowers it. 2. If consumers become thrifty, in the sense that they reduce their autonomous consumption, for example, this will end...
For each of the following statements, please indicate if it is TRUE or FALSE. Then provide...
For each of the following statements, please indicate if it is TRUE or FALSE. Then provide a justification or explanation of your answer to each question in less than 30 words The equation, Y = C+I+G+NX, implies that increasing government purchases of goods and services (G) and increasing net exports (NX) are two clear long-term strategy for raising national income (Y). The equation, Y = AK0.5L0.5, implies that in a competitive economy, the national income (Y) gets equally divided between...
TRUE or FALSE. Please explain with proper reasoning and example to support your reasoning If price...
TRUE or FALSE. Please explain with proper reasoning and example to support your reasoning If price is above the equilibrium price, price will tend to fall
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT