If the marginal product for that employee is greater than for the previous employee hired, it must be that there are gains from specialization
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What is marginal product ?</h3>
- The marginal product or marginal physical productivity of an input (factor of production) in economics, and particularly neoclassical economics, is the change in output that results from using one more unit of a specific input (for example, the change in output when a firm's labor is increased from five to six units), assuming that the quantities of other inputs are kept constant.
- The marginal product is the mathematical derivative of the production function with respect to that input if the output and the input are infinitely divisible, in which case the marginal "units" are infinitesimal.
- When more of one input, such as labor, is used while maintaining a constant level of the other input, such as capital, the marginal product initially rises according to the "rule" of declining marginal returns.
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Answer:
Rice is so cheap and truffles are so expansive because D. People eat so much rice that an additional serving of rice has little marginal value, but the marginal value of another serving of truffles is very high.
Explanation:
When it comes to tasty or nutritious foods, there should not be any reason to be more expensive than others food stuffs. However, they often cost a little more. Regarding rice and its easy way of cooking, it is not a strong argument to talk about the price. So the right answer D, due to the fact that is true that eating a higher rate of rice won't have such a great marginal value as it will with truffles. It has to do a lot with higher demand of rice.
Answer:
The correct answer is option D.
Explanation:
The law of demand states that keeping other things constant there is an inverse relationship between quantity demanded and price.
According to the law of increasing marginal opportunity cost with each additional output the marginal opportunity cost to produce next unit of output increases.
While the law of supply states that keeping other things constant there is a direct relationship between price and quantity supplied.
According to the law of diminishing marginal utility, the marginal utility derived from the consumption of each additional unit of good keeps declining as more and more unit of goods is consumed.
So, option D is the correct answer.
One of the example of the commodities in which the sellers have little choice in setting selling price is books
In selling a books, all the price is usually arranged by the publisher and manufacturer and the seller could not really set the selling prices unless they have enough resource to self-publish
The current U.S. economy is based primarily on the production of services. Services are expert work performed by teams for customers, such as products, accountancy, consultation, banking, cleaning, education, insurance, and treatment, for example.