Author Question: You operate a car detailing business with a fixed amount of machinery (capital), but you have ... (Read 122 times)

Garrulous · **on:** Jul 1, 2018

You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the number of workers that you employ per hour.

Three employees can generate an average product of 4 cars per person in each hour, and five employees can generate an average product of 3 cars per person in each hour. What is the marginal product of labor as you increase the labor from three to five employees? A) MP = 3 cars
B) MP = 1.5 cars
C) MP = 15 cars
D) MP = -1 cars

Question 2

Majority-rule voting

A) is economically efficient.
B) is never economically efficient.
C) may or may not be efficient, depending upon the preferences of the voters.
D) is economically efficient only in a democracy.
E) is economically efficient only if there is a median voter.