《江西财经大学微观经济学试题库》

MicroeconomicsylOe(Parkin)

Chapter11OutputandCosts

DecisionTimeFrames

Allthedecisionsmadebypeoplewhooperatefirmshaveoneoverridingobjective,whichisto

makemaximumattainableprofit

maximizethefirm*stotalrevenue

maximizethefirm*smarketshare

maximizethequantitythatthefirmsells

Answer:A

Topic:Goal

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Theshortrunisaperiodoftimeinwhich

thequantityofatleastonefactorofproductionisfixed.

theamountofoutputisfixed.

pricesandwagesarefixed.

nothingthefirmdoescanbealtered.

Answer:A

Topic:ShortRun

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

Theshortrunisaperiodoftimeinwhich

thequantityusedofatleastonefactorofproductionisfixed.

thequantitiesusedofallfactorsofproductionarefixed.

outputpricesarefixed.

factorofproductionpricesarefixed.

Answer:A

Topic:ShortRun

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

Aperiodoftimeinwhichthequantityofatleastonefactorofproductionusedbyafirmisfixediscalledthe

marketperiod.

intermediaterun.

shortrun.

longrun.

Answer:C

Topic:ShortRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Economistsdefinetheshortrunasaperiodoftimesoshortthat

theamountofoutputcannotbechangedexceptunderdiminishingmarginalreturns.

theamountofoutputcannotbechangedatall.

onlyonefactorofproductioncanbevaried.

atleastonefactorofproductioncannotbevaried.

Answer:D

Topic:ShortRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Theshortrunisatimeframeinwhich

atleastonefactorofproductionisfixed.

allfactorsofproductioncanbevaried.

allfactorsofproductionarefixed.

atleastonefactorofproductioncanbevaried.

Answer:A

Topic:ShortRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Intheshortrun,

allfactorsofproductionarefixed.

atleastonefactorofproductionisfixed.

allfactorsofproductionarevariable.

therearenovariablecosts.

Answer:B

Topic:ShortRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Intheshortrun

allfactorsofproductionarefixed.

laborusagemustremainfixed.

afirm'splantisfixed.

nofactorsofproductionarefixed.

Answer:C

Topic:ShortRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Theshortrunisatimeperiodduringwhich

afirmcanearnanormalprofit.

allfactorsofproductionarevariable.

atleastonefactorofproductionisfixed.

allfactorsofproductionarefixed.

Answer:C

Topic:ShortRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Theshortrunisatimeframeinwhich

thequantitiesofsomefactorsofproductionarefixedandthequantitiesofotherfactorsofproductioncanbevaried.

thequantitiesofallfactorsofproductioncanbevaried.

thequantitiesofallfactorsofproductionarefixed.

allcostsaresunkcosts.

Answer:A

Topic:ShortRun

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

Anexampleofavariablefactorofproductionintheshortrunis

abuilding.

capitalequipment.

anemployee.

land.

Answer:C

Topic:ShortRun

Skill:Conceptual

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

Whenthedemandforelectricitypeaksduringthehottestdaysofsummer,FloridaPowerandLightCompanycangeneratemoreelectricitybyusingmorefuelandincreasingtheworkinghoursofmanyofitsemployees.Thecompanycannot,however,increaseelectricpowerproductionbybuildingadditionalgeneratingcapacity.ThismeansthatthecompanyisintheA)marketrun.

shortrun.

intermediaterun.

longrun.

Answer:B

Topic:ShortRun

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Anexampleofashort-runfixedfactorofproductionis

capitalequipment.

labor.

electricity.

postageformailing.

Answer:A

Topic:ShortRun

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Acostthathasalreadybeenmadeandcannotberecoverediscalleda

variablecost.

fixedcost.

sunkcost.

marginalcost.

Answer:C

Topic:SunkCost

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Afterconstructinganewfactory,thecostofbuildingthefactoryisa

pastcost.

sunkcost.

variablecost.

Noneoftheaboveanswersarecorrect.

Answer:B

Topic:TheLongRun

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Thelongrunisatimeframeinwhich

thequantitiesofsomefactorsofproductionarefixedandthequantitiesofotherfactorsofproductioncanbevaried.

thequantitiesofallfactorsofproductioncanbevaried.

thequantitiesofallfactorsofproductionarefixed.

allcostsaresunkcosts.

Answer:B

Topic:LongRun

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

Aperiodoftimeinwhichthequantityofallfactorsofproductionusedbyafirmcanbevariediscalledthe

marketperiod.

variablerun.

shortrun.

longrun.

Answer:D

Topic:LongRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Inthelongrun,afirmhas

nofactorsofproductionthatarefixed.

nofactorsofproductionthatarevariable.

nofactorsofproductionthatareeitherfixedorvariable.

fixedfactorsofproductionbutnovariableresources.

Answer:A

Topic:LongRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Thelongrun

meansalongperiodoftime,alwayslongerthanayear.

isaperiodoftimeinwhichallfactorsofproductioncanbevaried.

isdifferentfordifferentfirms.

BothanswersBandCarecorrect.

Answer:D

Topic:LongRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Thelongrunisaperiodoftimeinwhich

allfactorsofproductionarevariable.

allfactorsofproductionarefixed.

somebutnotallfactorsofproductionarefixed.

somebutnotallfactorsofproductionarevariable.

Answer:A

Topic:LongRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Inthelongrun,afirmcanvary

itscapitalbutnotitslabor.

itslaborbutnotitscapital.

bothitslaboranditscapital.

neitheritslabornoritscapital.

Answer:C

Topic:LongRun

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Thelongrunisdistinguishedfromtheshortrunbecauseonlyinthelongrun

outputpricescanvary.

factorofproductionpricescanvary.

thequantitiesofallfactorsofproductioncanbevaried.

thefirmnolongermaximizesitsprofit.

Answer:C

Topic:LongRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Ineconomics,theshortrunisthetimeframeinwhichthequantitiesofandthe

longrunistheperiodoftimeinwhich.

somefactorsofproductionarevariable;thequantitiesofallfactorsofproductionarefixedB)allfactorsofproductionarevariablebuttechnologyisfixed;technologyisvariable

allfactorsofproductionarefixed;thequantitiesofallfactorsofproductioncanbevaried

somefactorsofproductionarefixed;thequantitiesofallfactorsofproductioncanbevariedAnswer:D

Topic:ShortRunandLongRun

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

Intheshortrun,

thesizeoftheplantisfixed.

allfactorsofproductionarevariable.

allfactorsofproductionarefixed.

somefirmsexperienceincreasingreturnstoscale.

Answer:A

Topic:StudyGuideQuestion,ShortRun

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Thelongrunisatimeperiodinwhich

oneyearorlesselapses.

allfactorsofproductionarevariable.

allfactorsofproductionarefixed.

thereisatleastonefixedfactorofproductionandatleastonevariablefactorofproduction.

Answer:B

Topic:StudyGuideQuestion,LongRun

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

2Short-RunTechnologyConstraint

Totalproductis

theincreaseinoutputthatresultsfromaone-unitincreaseinthequantityoflaboremployedwithallotherinputsremainingthesame.

maximumoutputthatagivenquantityoflaborcanproduce.

maximumamountofoutputproducedbyagivenquantityoflabordividedbythegivenquantityoflaboremployed.

maximumamountofamountofoutputproducedbyagivenquantityoflabordividedbypriceoftheoutput.

Answer:B

Topic:TotalProduct

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Pointsbelowafirm'stotalproductcurveare

bothattainableandtechnologicallyefficient.

neitherattainablenortechnologicallyefficient.

attainablebutnottechnologicallyefficient.

technologicallyefficientbutnotattainable.

Answer:C

Topic:TotalProductCurve

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Pointsonafirm'stotalproductcurveare

bothattainableandtechnologicallyefficient.

neitherattainablenortechnologicallyefficient.

attainablebutnottechnologicallyefficient.

technologicallyefficientbutnotattainable.

Answer:A

Topic:TotalProductCurve

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Whenthetotalproductcurveisdrawninafigurethatmeasuresemploymentalongthehorizontalaxis,itisagraphthatshowsthe

minimumcostofproducingagivenamountofoutputusingdifferenttechniques.

maximumprofitattainableforeachunitofoutputsoldperunitoflaboremployed.

maximumoutputattainableforeachquantityoflaboremployed.

minimumoutputattainableforeachquantityoflaboremployed.

Answer:C

Topic:TotalProductCurve

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Alltheproductionpointsthatliethetotalproductcurveareattainableand

above;efficient

above;inefficient

below;efficient

below;inefficient

Answer:D

Topic:TotalProductCurve

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

AErm'stotalproductcurveshows

thatinefficiencyisnotpossible.

howthecostofthefixedresourceschangewhenoutputchanges.

howtheamountofoutputchangeswhenthequantityoflaborchanges.

thatinthelongrunthefirmmustadjustthequantityofalltheresourcesitemploys.

Answer:C

Topic:TotalProductCurve

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Mosttotalproductcurveshave

firstincreasingandthendecreasingmarginalreturnstolabor.

outputfirstincreasingandthendecreasingaslaborisadded.

firstdecreasingandthenincreasingmarginalreturnstolabor.

outputincreasingatanincreasingrateaslaborisadded.

Answer:A

Topic:TheMarginalProductCurve

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Themarginalproductoflaborisequaltothe

totalproductdividedbythetotalnumberofworkershired.

increaseinthetotalproductthatresultsfromhiringonemoreworkerwithallotherinputsremainingthesame.

slopeofthemarginalproductoflaborcurve.

Noneoftheaboveanswersarecorrect.

Answer:B

Topic:MarginalProductofLabor

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Marginalproductis

theincreaseinoutputthatresultsfromaone-unitincreaseinthequantityoflaboremployedwithallotherinputsremainingthesame.

totalamountofoutputproduced.

totalamountofoutputproduceddividedbythequantityoflaboremployed.

totalamountofoutputproduceddividedbypriceoftheoutput.

Answer:A

Topic:MarginalProductofLabor

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Themarginalproductoflaboristheincreaseintotalproductfroma

oneunitincreaseinthequantityoflabor,whileholdingthequantityofotherinputsconstant.

oneunitincreaseinthequantityoflabor,whilealsoincreasingthequantityofotherinputsbyoneunit.

onedollarincreaseinthewagerate,whileholdingthepriceofotherinputsconstant.

onepercentincreaseinthewagerate,whilealsoincreasingthepriceofotherinputsbyonepercent.

Answer:A

Topic:MarginalProductofLabor

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

Themarginalproductoflaboristhechangeintotalproductfromaone-unitincreasein

thequantityoflaboremployed,holdingthequantityofotherinputsconstant.

thequantityofcapitalemployed,holdingthequantityoflaborconstant.

boththequantityoflaborandthequantityofotherinputsemployed.

thewagerate.

Answer:A

Topic:MarginalProductofLabor

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Themarginalproductoflaboristhe

changeinoutputresultingfromaone-unitincreaseinlaborwithallotherinputsremainingthesame.

maximumoutputattainablewithfixedfactorsofproductionwhenlaboristheonlyvariablefactorofproduction.

outputlevelabovewhichtheslopeofthetotalproductcurvefalls.

outputlevelabovewhichtherateoftotalproductperunitoflaborfalls.

Answer:A

Topic:MarginalProductofLabor

Skill:Recognition

Questionhistory:Modified10thedition

AACSB:ReflectiveThinking

Thetotaloutputproducedwithanyquantityoflaborisequaltothesumofthe

marginalproductsofeachoftheworkershired.

averageproductsofeachoftheworkershired.

totalwagesthefirmpaysitsworkers.

BothanswersAandBarecorrect.

Answer:A

Topic:MarginalProductofLabor

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Theaverageproductoflaborisequaltothe

totalproductdividedbythetotalnumberofworkershired.

totalnumberofworkershireddividedbythetotalproduct.

slopeofthemarginalproductoflaborcurve.

BothanswersBandCarecorrect.

Answer:A

Topic:AverageProductofLabor

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Averageproductequalsthe

increaseinoutputthatresultsfromaone-unitincreaseinthequantityoflaboremployedwithallotherinputsremainingthesame.

totalamountofoutputproduced.

totalamountofoutputproduceddividedbythequantityoflaboremployed.

totalamountofoutputproduceddividedbypriceoftheoutput.

Answer:C

Topic:AverageProductofLabor

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Averageproductoflaborisequalto.

totalproductmultipliedbythequantityoflaboremployed.

thetotalproductproduced

thequantityoflaboremployeddividedbytotalproduct

totalproductdividedbythequantityoflaboremployed

Answer:D

Topic:AverageProductofLabor

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Theaverageproductoflaboris

theinverseoftheaverageproductofcapital.

theslopeofthecurveshowingthemarginalproductoflabor.

theslopeofthecurveshowingthetotalproductoflabor.

totalproductdividedbythetotalquantityoflaboremployed.

Answer:D

Topic:AverageProductofLabor

Skill:Recognition

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

PizzaHut

Labor(workers)

Totalproduct(pizzasproducedperhour)

0

0

1

5

2

9

3

12

4

14

5

15

Usingthedataintheabovetable,whatisthemarginalproductofthesecondworker?

4.5pizzasperhour

4pizzasperhour

5pizzasperhour

Themarginalproductisundefined.

Answer:B

Topic:TotalProduct

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Usingthedataintheabovetable,whatisthemarginalproductofthethirdemployee?

2pizzasperhour

3pizzasperhour

4pizzasperhour

12pizzasperhour

Answer:B

Topic:MarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Usingthedataintheabovetable,whatistheaverageproductofthreeemployees?

2pizzasperhour

3pizzasperhour

4pizzasperhour

12pizzasperhour

Answer:C

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Labor(workersperday)

Totalproduct(hatsperday)

0

0

1

4

2

10

3

18

4

25

5

30

Theabovetableshowsthetotalproductofproducingbaseballhats.Themarginalproductofthe4thworkerisequalto

25baseballhats.

21baseballhats.

7baseballhats.

6.25baseballhats.

Answer:C

Topic:MarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Theabovetableshowsthetotalproductofproducingbaseballhats.Theaverageproductof3workersisequalto

1.67baseballhats.

6.00baseballhats.

12.78baseballhats.

18.00baseballhats.

Answer:B

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Labor(workers)

Totalproduct(units)

Marginalproduct

Averageproduct

0

0

1

3

2

4.5

3

14

4

3

5

19

6

1

Theabove(incomplete)tableprovidesinformationabouttherelationshipsbetweenlaborandvariousproductmeasures.Thetotalproductthatcanbeproducedwith6unitsoflaborisA)20.

Moreinformationisneededtoanswerthequestion.

19.

Noneoftheaboveanswersiscorrect.

Answer:A

Topic:TotalProduct

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Theabove(incomplete)tableprovidesinformationabouttherelationshipsbetweenlaborandvariousproductmeasures.TheamountoflaborthatmaximizesthemarginalproductoflaborisA)2unitsoflabor.

3unitsoflabor.

4unitsoflabor.

5unitsoflabor.

Answer:A

Topic:MarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Theabove(incomplete)tableprovidesinformationabouttherelationshipsbetweenlaborandvariousproductmeasures.Theaverageproductofthefourthunitoflabor

exceedsthemarginalproductofthefourthunitoflabor.

islessthanthemarginalproductofthefourthunitoflabor.

isequaltothemarginalproductofthefourthunitoflabor.

isequalto4.0.

Answer:A

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

TotalProduct,MarginalProduct,AverageProduct

Labor(workersperday)

Totalproduct(unitsperday)

Marginalproduct

Averageproduct

0

0

0

0

1

2

2

2

2

8

3

12

4

15

5

16

1

Intheabovetable,themarginalproductofthesecondworkeris

1.

2.

3.

4.

Answer:D

Topic:TotalProduct

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovetable,themarginalproductofthethirdworkeris

1.

2.

3.

4.

Answer:D

Topic:MarginalProductofLabor

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovetable,themarginalproductofthefourthworkeris

1.

3.

4.

6.

Answer:B

Topic:MarginalProductofLabor

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovetable,themarginalproductisgreatestwhenthe

firstworkerishired.

secondworkerishired.

thirdworkerishired.

fourthworkerishired.

Answer:B

Topic:MarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovetable,theaverageproductofthreeworkersis

1.

2.

3.

4.

Answer:D

Topic:AverageProductofLabor

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovetable,theaverageproductislessthanthemarginalproduct

whenthefirstworkerishired.

whenthesecondworkerishired.

whenthethirdworkerishired.

fortheentirerangeofoutputgiven.

Answer:B

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Labor(workersperday)

Quantity(Tshirtsperday)

0

0

1

10

2

22

3

30

4

34

5

35

ThetableshowssomedatathatdescribesTom'sT-Shirts'totalproductwhenTom'shas1sewingmachine.When4workersareemployed,.

averageproductoflaborisamaximum

marginalproductoflaborislessthanaverageproductoflabor

marginalproductoflaborexceedsaverageproductoflabor

marginalproductoflaborequalsaverageproductoflabor

Answer:B

Topic:AverageProductofLaborandMarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Labor(workersperday)

Totalproduct(pizzasperday)

0

0

1

10

2

25

3

37

4

45

5

50

BasedontheproductiondataforPat'sPizzaParlorintheabovetable,themarginalproductofthe4thworkerispizzas.

5

B)8

10

45

Answer:B

Topic:MarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

BasedontheproductiondataforPat'sPizzaParlorintheabovetable,whichworkerhasthelargestmarginalproduct?

Worker1

Worker2

Worker3

Worker4

Answer:B

Topic:MarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

BasedontheaboveproductiondatatableforKen'sPizzaParlor,weknowthattheaverageproductoflaborcurvebeginstodecreaseafterhiringworker.

A)1

B)2

C)3

D)4

Answer:B

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:New10thedition

AACSB:AnalyticalSkills

BasedontheproductiondataforPat'sPizzaParlorintheabovetable,theaverageproductoflaborwhen4workersarehiredispizzas.

8

10

11.25

45

Answer:C

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

BasedontheproductiondataforPat'sPizzaParlorintheabovetable,whichofthefollowingpairofworkershavethesameaverageproduct?

1and2

2and4

1and5

2and5

Answer:C

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Labor(workersperday)

(>op」①dsumdqdo

Inthefigureabove,themarginalproductofthesecondworkeris

10units.

5units.

2units.

1units.

Answer:B

Topic:MarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovefigure,afterthesecondworkerishired,themarginalproductoflaborisA)increasing.

diminishing.

constant.

zero.

Answer:B

Topic:MarginalProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Atpointdintheabovefigure,theaverageproductoflaborequalsA)15.

4.

3.75.

approximately1.

Answer:C

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovefigure,theaverageproductoflaboratpointcis

10.

5.

2.

Noneoftheaboveanswersiscorrect.

Answer:B

Topic:AverageProductofLabor

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Inthefigureabove,isatechnologicallyefficientpoint.A)d

B)/

C)g

D)Noneoftheselectionsarecorrect.

Answer:A

Topic:TotalProductCurve

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovefigure,atechnologicallyinefficientpointis

a.

e.

C)g.

D)/

Answer:D

Topic:TotalProductCurve

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovefigure,anunattainablepointis

a.

e.

g.

D)Z

Answer:C

Topic:TotalProductCurve

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovefigure,themostefficientwaytoproduce1()unitsistohire

1worker.

2workers.

3workers.

5workers.

Answer:B

Topic:TotalProductCurve

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovefigure,themostefficientwaytoproduce15unitsistohire

2workers.

3workers.

4workers.

5workers.

Answer:C

Topic:TotalProductCurve

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovefigure,themaximumnumberofunitsthat4workerscanproduceisA)5units.

10units.

15units.

morethan15units.

Answer:C

Topic:TotalProductCurve

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Intheabovefigure,themarginalproductoflaboriszeroatpoint

a.

c.

e.

D)Z

Answer:C

Topic:MarginalProductCurve

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Atpointeintheabovefigure,themarginalproductoflabor

islessthantheaverageproductoflabor.

equalstheaverageproductoflabor.

isgreaterthantheaverageproductoflabor.

isatitsmaximum.

Answer:A

Topic:MarginalProductCurve

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

Thesteepertheslopeofthetotalproductcurve,the

largeristhemarginalproductoflabor.

smalleristhemarginalproductoflabor.

higheristhelevelofthetotalcostcurve.

moreefficientisthetechnologyemployed.

Answer:A

Topic:MarginalProductCurve

Skill:Conceptual

Questionhistory:Previousedition,Chapter11

AACSB:AnalyticalSkills

IncreasingmarginalreturnstolabormightoccuratlowlevelsoflaborinputbecauseofA)increasingaveragecosts.

differingfactorproportions.

increasingspecializationoftasks.

decreasinguseofmachineryandincreasinguseoftechnology.

Answer:C

Topic:IncreasingMarginalReturns

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:ReflectiveThinking

Ingeneral,increasingmarginalreturnsoccur

asoutputexpandsatlowlevelsofproduction.

throughtheentirerangeofproduction.

asoutputexpandsathighlevelsofproduction.

whenevertheslopeofthetotalproductcurveispositive.

Answer:A

Topic:IncreasingMarginalReturns

Skill:Analytical

Questionhistory:Previousedition,Chapter11

AACSB:Reflectiv