Problem 1: Marginal revenue product measures the:
a. amount by which the extra production of one more worker increases a firm's total revenue.
b. decline in product price that a firm must accept to sell the extra output of one more worker.
c. increase in total resource cost resulting from the hire of one extra unit of a resource.
d. increase in total revenue resulting from the production of one more unit of a product.
Problem 2: Marginal product is:
a. the output of the least skilled worker.
b. the amount an additional worker adds to the firm's total output.
c. a worker's output multiplied by the price at which each unit can be sold.
d. the amount any given worker contributes to the firm's total revenue.
Problem 3: Capital and labor:
a. are always complementary.
b. are always substitutable.
c. may be either complementary or substitutable.
d. are both normal inputs.