If a factor exhibits diminishing marginal product, hiring additional units of the factor will ?

Related Mcqs:

When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?

A. interest B. dividends C. increases in stocks of goods D. retained earnings...

Suppose that a war is fought will biological weapons. The weapons destroy people but not capital. What is likely to happen to equilibrium wages and rental rates after the war when compared to their values before the war ?

A. Wages rise, and rental rates fall B. Wages rise, and rental rates rise C. Wages fall, and rental rates rise D. Wages fall, and rental rates fall...

What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?

A. increase the demand for fishing boats and decrease rental rates on fishing boats B. decreases the demand for fishing boats and increase rental rates on fishing boats. C. decreases the value of the marginal product of fishermen, reduces their wage, and increases employment in the fishing industry D. increase the demand for fishing boats … What will a decrease in the supply of fishermen do to the market for capital employed in the fishing industry ?Read More...

A decrease in the supply of farm tractors will cause all but which of the following ?

A. an increase in the rental rate for tractor B. a decrease in the rental rate of farmland C. a decrease in the value of the marginal product of tractors D. an increase in the wage of farm workers...

An individual firm’s demand for a factor of production ?

A. Slopes downward because an increase in the production of output reduces the price at which the output can be sold in a competitive market, thereby reducing the value of the marginal producing the value of the marginal product as more of the factor is use B. Slopes downward due to the factor’s diminishing marginal … An individual firm’s demand for a factor of production ?Read More...