The formula for the marginal revenue product of labour (L is for labour, X is the product) is ?

Related Mcqs:

1. In a competitive labour market firms will hire labour up to the point where the marginal revenue product of labour equals ?

   A. total labour cost
   B. the marginal product
   C. the price of the product
   D. the wage rate

2. If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?

   A. be flat (horizontal)
   B. slope upward
   C. slope downward
   D. be U-shaped.

3. The marginal revenue product of labour is ?

   A. the marginal product of capital times the price of labour.
   B. the additional revenue a firm earns by employing on additional unit of labour
   C. the additional profit a firms earns by employing one additional unit of labour
   D. the additional revenue the firm makes by selling one unit of labour.

4. If output price is constant, the marginal revenue product of labour curve will have the same shape as the ?

   A. total variable cost curve
   B. marginal cost curve
   C. total product of labour curve
   D. marginal product of labour curve

5. If both marginal cost and marginal revenue increase, a firm ?

   A. Should increase output
   B. Should reduce output
   C. will require further information on how to respond
   D. Should not change output

6. An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?

   A. reduces; reduces
   B. reduces; increases
   C. increases; increases
   D. increases; reduces

7. If a marginal revenue exceeds marginal cost, a monopolists should?

   A. increase should
   B. decrease output
   C. keep output the same because profits are maximized when marginal revenue exceeds marginal cost
   D. raise the price

8. When marginal revenue equals marginal cost ?

   A. Total revenue equals total cost
   B. There is the biggest positive difference between total revenue and total cost
   C. There is the biggest negative difference between total revenue and total cost
   D. Profits are Zero

9. If the marginal revenue is less than the marginal cost then to profit maximise a firm should ?

   A. Reduce output
   B. Increase output
   C. Leave output where it is:
   D. Increase costs

10. If a competitive firm is producing a level of output where marginal revenue exceeds marginal cost the firm could increase profit if it ?

    A. decreased production
    B. maintained production at the current level
    C. temporarily shut down.
    D. increased production