Question

The marginal product of labor is defined as A. the additional output that results when one more worker is​ hired, holding all other resources constant. B. the additional number of workers required to produce one more unit of output. C. the cost of hiring one more worker. D. the additional sales revenue that results when one more worker is hired. In the United​ States, government policies with respect to monopolies and collusion are embodied in A. common​ law, which the United States adopted from English law. B. the U.S. Constitution. C. antitrust laws. D. the Supreme Court.

Answer 1

1. Option A.

• The marginal product of labour is defined as the additional output that results when one more worker is hired, holding all other resources constant.
• It measures the changes in output of a firm with respect to the changes in labour employed.
• We can calculate marginal product of labour as :

MPL = change in total output / change in labour.

2. Option C.

• In the US, government policies with respect to monopolies and collusion are embodied in Anti trust laws.
• In monopoly, a single firm enjoys the whole market power, while in oligopolies, many dominant firms collude together to decide on the market prices and the level of output. These two market structures can hurt customers if the firms make use of their market powers and charge higher rates for their goods and services.
• Hence these Anti trust laws are put forward by the government to regulate Various firms and organisations in order to protect the customers from their unlawful practices and to promote fair competition.