Which of the Following Events Would Lead to an Increase

question 67

Multiple Choice

Which of the following events would lead to an increase in the marginal product of labor for every quantity of labor?

• A)An increase in the real wage
• B)A decrease in the real wage
• C)A favorable supply shock such as a fall in the price of oil
• D)An adverse supply shock, such as a reduced supply of raw materials

Recognize the role of specialization in achieving economies of scale.

Understand the difference between marginal cost, average total cost, and marginal product in the context of production and cost functions.

Distinguish between explicit and implicit costs, and understand their implications for economic and accounting profit.

Analyze the impact of production scale on cost structures and managerial decisions regarding output levels.

---

Definitions:

A House

A building for human habitation, typically consisting of multiple rooms and other spaces.

Trespasser

An individual who enters someone's property without permission or legal right.

Electric Meter

A device that measures the amount of electrical energy consumed by a residence, business, or an electrically powered device.

Private Property

Land or belongings owned by individuals or corporations and not by the government or public entities.