In a Machine Shop, the Marginal Physical Product of an Additional

question 246

Multiple Choice

In a machine shop, the marginal physical product of an additional unit of labor is 4 units of output, while the marginal physical product of an additional piece of machinery is 2, under what conditions would the firm increase labor usage?

• A)It would increase labor usage if the wage rate is more than twice the unit price of a piece of machinery.
• B)It would increase labor usage if the wage rate is less than twice the unit price of a piece of machinery.
• C)It would increase labor usage as long as the wage rate is less than the unit price of a piece of machinery.
• D)It would not increase labor usage under any scenario.

---

Definitions:

Public Network Site

A website or online platform that is accessible to the general public, often used for sharing information or social networking.

Background Information

Background information provides context for the main content, offering initial information that helps readers understand the full scope of the subject.

Candidate's Permission

The explicit consent given by an individual, allowing actions or procedures related to their application process, personal information, or participation in some activity.

General Potential

Refers to the broad, overall capability or capacity of an entity, system, or person to achieve or become something more.