Question

Explain why the change in the marginal product is not constant as additional workers are hired.

Explain why the change in the marginal product is not constant as additional workers are hired.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Marginal product refers to the addition in the total product when the additional unit of the labour is hired, and the change in the marginal product is not constant as additional workers are hired because when the number of workers increases it implies that each additional worker has less capital work with which will decrease the marginal product of each additional worker. So, the main reason, why the marginal product is not constant, is the fixity of the some factors of production such as capital or machinery.

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
Are workers paid their marginal product? If not, why? Try to provide examples where workers may...
Are workers paid their marginal product? If not, why? Try to provide examples where workers may receive wages above or below their marginal product
*Please explain why* If the marginal product of capital doesn’t change as the amount of capital...
*Please explain why* If the marginal product of capital doesn’t change as the amount of capital increases, but production increases, then a plot of the production function, showing output as a function of capital, A. is a vertical line. B. is a straight line with a slope of zero. C. is a straight line with constant upward slope. D. slopes upward with a slope that declines as the amount of capital increases.
1. Explain why marginal physical product would diminish as more waiters are hired in a restaurant?...
1. Explain why marginal physical product would diminish as more waiters are hired in a restaurant? 2. Who is hurt and who is helped by an increase in the legal minimum wage? Jobs are lost if the new minimum wage is above equilibrium wage [market price]. Under what circumstances might a higher minimum not reduce employment?
2.Explain why the slope of the production function falls as more workers are hired, that is,...
2.Explain why the slope of the production function falls as more workers are hired, that is, total product increases at a decreasing rate, while the slope of the total cost curve rises as more output is produced, that is, TC increases at an increasing rate. Use the personal opinion to answer，thanks.
A firm employs 50 workers on a product line. Each worker receives $20 per hour. The...
A firm employs 50 workers on a product line. Each worker receives $20 per hour. The product the workers make sells for $10 per item. The marginal product of the fiftieth worker hired is 4 items per hour with a marginal revenue product of $40 for that hour. a. The employer should stop hiring. b. The employer should never stop hiring. c. The employer should stop hiring when marginal revenue product of the additional labor is $20/hour. d. The employer...
If the marginal product of labor has been rising with each labor unit hired over the...
If the marginal product of labor has been rising with each labor unit hired over the past 30 labor units, then the marginal cost of production has _________ as output rose with these last 30 hired labor units. a) been falling b) held constant c) been rising
Explain why according to neoclassical economics, wages of workers will be set by the value of...
Explain why according to neoclassical economics, wages of workers will be set by the value of the marginal product of labor?
[2b] Explain and graph the relationship between marginal product and marginal cost in a firm. Why...
[2b] Explain and graph the relationship between marginal product and marginal cost in a firm. Why must the marginal cost of production increase if the marginal product of the variable resource is decreasing.
1. When an additional worker is hired they will produce additional output, the additional unit of...
1. When an additional worker is hired they will produce additional output, the additional unit of labor is called ________. A. the total product of labor B. the market for labor C. the marginal product of labor 2. The concept of derived demand of labor means that A. supply for labor will increase from a demand for output. B. demand for labor is decreased from a demand for output. C. demand for labor is created from a demand for a...
(A). Define marginal physical product. (B). Why does marginal physical product decline at a fast food...
(A). Define marginal physical product. (B). Why does marginal physical product decline at a fast food store (e.g. McDonald's) when more employees are hired? (C) What are the fixed input constraints that limit worker productivity?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT