Diminishing marginal productivity begins when the:      A). third worker is hired.       B). fourth worker is hired.       C). fifth worker is hired.       D). sixth worker is hired.

Question 1.34: Marginal product of labor Country Z has perfectly competitive markets in which labor and all goods clear. A firm produces bread using raw material (flour), workers (bakers), and capital (ovens). A worker produces 29 loaves of bread each hour. Each loaf of bread sells for 3.47. ● ● The firm uses flour costing 1.53 for each loaf of bread. No bread remains unsold each day, and consumers can buy all the bread they want. The price level is 1.39. The nominal wage rate is 56.62 an hour. ● Firms earn an accounting profit of 2.20 on each loaf of bread. What is the marginal product of labor (in real terms) for bakers? A. 40.73 an hour B. 45.90 an hour C. 63.80 an hour D. 72.40 an hour E. 100.63 an hour Question 1.35: Real interest rate Which of the following causes the current real interest rate to decrease? A. A permanent decrease in government spending B. A temporary decrease in government spending C. Central bank purchases of bonds in the open market D. Central bank sales of…

38) In the short run, the marginal product of labor might increase initially as more workers are hired because A) the first workers hired get to use the best equipment. B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task. c the best workers are hired first and later hires are not as skillful. Dj beyond some point, a firm has hired too many workers.

Explain efficiency wage theory  Only typed solution