If the Marginal Product of Labor Increases Because of a Shift

question 99

Multiple Choice

If the marginal product of labor increases because of a shift of the marginal product curve,it will likely cause _____

• A)an increase in the price of output produced by labor.
• B)an increase in labor demand.
• C)an increase in labor supply.
• D)a fall in the wage paid to labor.
• E)a fall in the number of workers employed.

Understand the factors influencing a firm's hiring decisions and how it impacts profit maximization.

Analyze marginal revenue product (MRP) and its role in determining the optimal level of labor employment.

Interpret tables and figures related to labor and product markets to make informed economic decisions.

Recognize the relationship between wage rates, productivity, and employment levels in a competitive labor market.

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Definitions:

Observations

The collected data points or measurements recorded during a scientific study or research project.

Symmetric

A characteristic of shapes or distributions that exhibit mirror-like similarity on either side of a central point or axis.

Histogram

A graphical representation of the distribution of numerical data, using bars of different heights to show the frequency of data in successive intervals.

Vertical Line

A vertical line is a straight line that goes up and down without any tilt, perfectly perpendicular to a horizontal plane, often used in geometric contexts and graphing.