Suppose each worker must use only one shovel to dig a trench, and shovels are useless by themselves. Suppose also that workers are the variable input factor in the short run. An increase in the price of shovels in the short run will result inGroup of answer choicesfewer shovels being purchased.more workers being hired.a decrease in the firm's output.no change in the firm's output.

In the short run, how will a decrease in variable costs affect the output of a typical firm in a competitive market?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aAn increase in outputbA decrease in outputcNo change in outputdCannot tell

In the short run, if a firm's marginal physical product of labour is decreasing,a) the firm's output must also be decreasing.b) the firm's variable cost must be decreasing.c) the firm’s marginal cost must be increasing.d) the firm’s average variable cost must be decreasing

Assume that a profit-maximizing, perfectly competitive firm hires labor in a perfectly competitive labor market. If the market wage is $12 per hour and the price of the product is $3 per unit, the firm will ahire more workers if each worker can produce 3 units per hour bhire another worker if the output per hour of the additional worker exceeds 4 units chire fewer workers, since the hourly wage exceeds the cost of producing one unit of output dcontinue to operate in the short run but not in the long run

We can safely say that total output can increase if there is a(n)Group of answer choicesincrease in the size of the labor force and a decrease in the productivity of workers.decrease in the size of capital and an increase in the productivity of machines.increase in the number of machines per worker.decrease in the number of workers per machine.

A short-run production function at some point becomes flatter due to: Group of answer choicesDecreasing returns to scale.Increasing returns to scale.The fact that a firm has to hire poorer quality workers as production increases.Diminishing marginal product.None of the above.