03 Jun Question One question from the list will be on the actual
Question
One question from the list will be on the actual exam. This question is worth 20 points. Since you do not
know which question will be on the actual exam, you MUST type up the answers for both questions in
advance. Makes sure you type your name on the each essay answer.
Here is my advice: Do NOT play a Russian roulette with your course grade; make sure you take your time to
write up the answers in details. To answer properly, these questions require minimum one-third to a half
page, single-space, font size 12.
Below is the list of the questions. The first question is my own, and the second question comes from your
textbook.
(1) How does capital investment affect the marginal physical product of labor? Does more college
education have the same kind of effect? Which is a better investment?
(2) Make sure you really explain your answer. If you wish, you can also include an example while
explaining your answer in detail.
According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue
product is greater than her marginal cost to the company. It is well known that many companies have
management training programs in which new trainees are paid relatively high starting salaries and are not
expected to make substantial contributions to the company until after the program is over (programs may run
between 6 to 18 months). In offering such training programs, is a company viola
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