Author Question: Assume that a firm is operating in the short run and all resources are fixed except for labor. The ... (Read 46 times)

formula1 · **on:** Jun 30, 2018

Assume that a firm is operating in the short run and all resources are fixed except for labor. The total product curve for this firm will increase at a decreasing rate because:
a. value of marginal product of labor is unchanged as more labor is hired.
b. marginal product of labor will decline as more labor is hired.
c. value of marginal product of labor will increase as more labor is hired.
d. marginal product of labor is unchanged as more labor is hired.

Question 2

Network effects result from
A) entry barriers.
B) economies of scale.
C) standardization.
D) none of these choices.