In the Short Run Marginal Product of Labor Initially Rises

question 84

Multiple Choice

In the short run marginal product of labor initially rises and then falls there may be two output levels where marginal revenue equals marginal cost. In this case how does a firm choose the appropriate output level?

• A)choose the lower of the two output levels
• B)choose the point where marginal costs falling
• C)choose the point where average cost is minimized
• D)choose the point where marginal cost is rising

Understand diverse strategies to achieve time, quality, or cost reduction in organizations.

Recognize the benefits of hybrid supply structures in organizational design.

Comprehend the influence of organizational structure on supply processes, internal relationships, and systems.

Acknowledge the role of standardization in lowering the total cost of ownership.

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Definitions:

Short-Run Equilibrium

A state in which market supply equals market demand at a particular price level, but where all factors of production and costs are not fully adjustable.

Long-Run Equilibrium

A state in which economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change.

Economic Expansions

Phases in the business cycle where the economy grows, characterized by increased output, employment, and consumer spending.

U.S. Price Level

An index that measures the average prices of goods and services across various sectors in the United States over a specific period.