Refer to the following: The amount of total output produced from various combinations of labor and capital. \[\begin{array}{l} \text { Units of Capital }\\ \begin{array} { c c c c c c } & & 1 & 2 & 3 & 4 \\ \hline \text { Units } & 1 & 20 & 36 & 48 & 53 \\ \text { of } & 2 & 38 & 68 & 88 & 94 \\ \text { Iabor } & 3 & 53 & 94 & 122 & 133 \\ & 4& 63 & 112 & 148 & 164 \\ & 5 & 68 & 120 & 164 & 184 \end{array} \end{array}\] -Diminishing marginal productivity

A) occurs when the marginal product curve begins to slope downward. B) means that adding one more unit of the variable input will reduce total product. C) occurs eventually because each additional unit of the variable unit has, on average, fewer units of the fixed input with which to work. D) both a and c E) both b and c A) occurs when the marginal product curve begins to slope downward. B) means that adding one more unit of the variable input will reduce total product. C) occurs eventually because each additional unit of the variable unit has, on average, fewer units of the fixed input with which to work. D) both a and c E) both b and c

Refer to the following: $\begin{array}{cccc} \begin{array}{c} \text { Number of } \\ \text { Workers } \end{array} & \begin{array}{c} \text { Total } \\ \text { Product } \end{array} & \begin{array}{c} \text { Average } \\ \text { Product } \end{array} & \begin{array}{c} \text { Marginal } \\ \text { Product } \end{array} \\ \hline 5 &- & 28 & -30 \\ 10 & - & - & 30\\ 15 & 420 & - &- \\ 20 &- & - &22\\ \end{array}$ -Diminishing returns begin with the

A) 1st worker. B) 5th worker. C) 10th worker. D) 11th worker. E) 16th worker. A) 1st worker. B) 5th worker. C) 10th worker. D) 11th worker. E) 16th worker.

Refer to the following: The amount of total output produced from various combinations of labor and capital. $\begin{array}{cccc} &\text { Units of Capital }\\ && 1 & 2 & 3&4 \\ \hline &1 & 50&120&160&180 \\ \text {Units }&2 & 110&260&360&390 \\ \text {of }&3 & 150&360&510&560\\ \text {Labor }&4 & 170&430&630&690 \\ &5 & 160&4801&710&790 \\ \end{array}$ -If the capital stock is fixed at four units and there are three units of labor, what is the average product of labor?

A) 50 B) 140 C) 157.5 D) 170 E) none of the above A) 50 B) 140 C) 157.5 D) 170 E) none of the above

Refer to the following: Amount of total output produced from various combinations of labor and capital. $\begin{array}{cccc} &\text { Units of Capital }\\ && 1 & 2 & 3 \\ \hline &1 & 80 & 100 & 120 \\ \text {Units }&2 & 180 & 220 & 260 \\ \text {of }&3 & 270 & 330 & 390 \\ \text {Labor }&4 & 340 & 420 & 500 \\ &5 & 390 & 490 & 590 \\ &6 & 410 & 530 & 650 \end{array}$ -If labor is fixed at three units, how much does the third unit of capital add to total output?

A) 60 B) 80 C) 110 D) 130 E) none of the above A) 60 B) 80 C) 110 D) 130 E) none of the above

Refer to the following: Amount of total output produced from various combinations of labor and capital. $\begin{array}{cccc} &\text { Units of Capital }\\ && 1 & 2 & 3 \\ \hline &1 & 80 & 100 & 120 \\ \text {Units }&2 & 180 & 220 & 260 \\ \text {of }&3 & 270 & 330 & 390 \\ \text {Labor }&4 & 340 & 420 & 500 \\ &5 & 390 & 490 & 590 \\ &6 & 410 & 530 & 650 \end{array}$ -If capital is fixed at two units, what is the marginal product of the fourth unit of labor?

A) 60 B) 80 C) 100 D) 420 E) none of the above A) 60 B) 80 C) 100 D) 420 E) none of the above

Refer to the following: The capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. \[\begin{array} { c c } \text { units of } & \text { units of } \\ \text { Labor } & \text { Output } \\ \hline 5 & 40 \\ 10 & 100 \\ 15 & 180 \\ 20 & 220 \end{array}\] -How much does the 50th unit of output add to the firm's total cost?

A) $6.67 B) $10 C) $400 D) $600 E) none of the above A) $6.67 B) $10 C) $400 D) $600 E) none of the above

Refer to the following: The amount of total output produced from various combinations of labor and capital. $\begin{array}{cccc} &\text { Units of Capital }\\ && 1 & 2 & 3&4 \\ \hline &1 & 50&120&160&180 \\ \text {Units }&2 & 110&260&360&390 \\ \text {of }&3 & 150&360&510&560\\ \text {Labor }&4 & 170&430&630&690 \\ &5 & 160&4801&710&790 \\ \end{array}$ -If the capital stock is fixed at one unit, how much does the third unit of labor add to total output?

A) 20 B) 40 C) 60 D) 80 E) none of the above A) 20 B) 40 C) 60 D) 80 E) none of the above

Exam 8: Production and Cost in the Short Run

Refer to the following: The wage rate is $600 and total fixed cost is $15,000. -How much output does the firm produce when average variable cost is at its minimum?

(Multiple Choice)

4.8/5

(42)

Question 41

Refer to the following: "At Huffy's ... bicycle factory, 1,700 employees turn out 15,000 bicycles a day (in 1987). Five years ago, it required 2,200 workers to make 10,000 bikes daily." (The Wall Street Journal). -In 1987,

(Multiple Choice)

4.7/5

(39)

Question 42

Refer to the following: The amount of total output produced from various combinations of labor and capital. nbsp; nbsp; nbsp; nbsp; nbsp; Units of Capital 1 2 3 4 Units 1 20 36 48 53 of 2 38 68 88 94 Iabor 3 53 94 122 133 4 63 112 148 164 5 68 120 164 184 -Diminishing marginal productivity

(Multiple Choice)

4.8/5

(37)

Question 43

Refer to the following: Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. -What is average total cost?

(Multiple Choice)

4.9/5

(36)

Question 44

Refer to the following: Number of Workers Total Product Average Product Marginal Product 5 - 28 -30 10 - - 30 15 420 - - 20 - - 22 -Diminishing returns begin with the

(Multiple Choice)

4.7/5

(42)

Question 45

Suppose you run a pizza shop and currently have two employees. If you hire a third employee, your output of pizzas per day rises from 55 to 65. If you hire a fourth employee, output rises to 80 per day. A fifth and sixth employee would cause output to rise to 90 and 95 per day, respectively. Pick the correct statement:

(Multiple Choice)

4.9/5

(36)

Question 46

Refer to the following: The amount of total output produced from various combinations of labor and capital. Units of Capital 1 2 3 4 1 50 120 160 180 Units 2 110 260 360 390 of 3 150 360 510 560 Labor 4 170 430 630 690 5 160 4801 710 790 -If the capital stock is fixed at four units and there are three units of labor, what is the average product of labor?

(Multiple Choice)

4.8/5

(39)

Question 47

Refer to the following: The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000. -When the firm uses 40 units of labor, what is average total cost at this output?

(Multiple Choice)

4.7/5

(37)

Question 48

Refer to the following: Amount of total output produced from various combinations of labor and capital. Units of Capital 1 2 3 1 80 100 120 Units 2 180 220 260 of 3 270 330 390 Labor 4 340 420 500 5 390 490 590 6 410 530 650 -If labor is fixed at three units, how much does the third unit of capital add to total output?

(Multiple Choice)

4.8/5

(30)

Question 49

Refer to the following: Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. -What is the marginal cost?

(Multiple Choice)

4.8/5

(41)

Question 50

Refer to the following: -In the above figure, what is the TOTAL cost of producing 5 units of output?

(Multiple Choice)

4.9/5

(32)

Question 51

Refer to the following: A firm produces 4,000 units of output using 500 workers. Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000. -What is average variable cost?

(Multiple Choice)

4.8/5

(34)

Question 52

Refer to the following: Amount of total output produced from various combinations of labor and capital. Units of Capital 1 2 3 1 80 100 120 Units 2 180 220 260 of 3 270 330 390 Labor 4 340 420 500 5 390 490 590 6 410 530 650 -If capital is fixed at two units, what is the marginal product of the fourth unit of labor?

(Multiple Choice)

4.9/5

(34)

Question 53

For a short-run production function in which output is determined by the number of workers utilized (capital stock held constant), which of the following is FALSE?

(Multiple Choice)

4.8/5

(33)

Question 54

The marginal product of labor

(Multiple Choice)

4.9/5

(29)

Question 55

Which of the following statements is FALSE?

(Multiple Choice)

5.0/5

(40)

Question 56

Refer to the following: The capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. units of units of Labor Output 5 40 10 100 15 180 20 220 -How much does the 50th unit of output add to the firm's total cost?

(Multiple Choice)

4.9/5

(38)

Question 57

Refer to the following: -In the above figure, what is the AVERAGE variable cost of producing 5 units of output?

(Multiple Choice)

4.8/5

(30)

Question 58

Refer to the following: The amount of total output produced from various combinations of labor and capital. Units of Capital 1 2 3 4 1 50 120 160 180 Units 2 110 260 360 390 of 3 150 360 510 560 Labor 4 170 430 630 690 5 160 4801 710 790 -If the capital stock is fixed at one unit, how much does the third unit of labor add to total output?

(Multiple Choice)

4.8/5

(37)

Question 59

Assume capital is fixed at 4 units and the wage rate of labor is $600. a. As labor is increased from 1 to 2 units, AVC (rises, falls) from $to $. b. As labor is increased from 1 to 2 units, MC (rises, falls) from $ to $. c. As labor is increased from 3 to 4 units, AVC (rises, falls) from $ to $. d. As labor is increased from 3 to 4 units, MC (rises, falls) from $ to $.

(Short Answer)

4.9/5

(40)

Question 60

Refer to the following: The wage rate is $600 and total fixed cost is $15,000. -How much output does the firm produce when average variable cost is at its minimum?

Refer to the following: "At Huffy's ... bicycle factory, 1,700 employees turn out 15,000 bicycles a day (in 1987). Five years ago, it required 2,200 workers to make 10,000 bikes daily." (The Wall Street Journal). -In 1987,

Refer to the following: The amount of total output produced from various combinations of labor and capital. nbsp; nbsp; nbsp; nbsp; nbsp; Units of Capital 1 2 3 4 Units 1 20 36 48 53 of 2 38 68 88 94 Iabor 3 53 94 122 133 4 63 112 148 164 5 68 120 164 184 -Diminishing marginal productivity

Refer to the following: Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. -What is average total cost?

Refer to the following: Number of Workers Total Product Average Product Marginal Product 5 - 28 -30 10 - - 30 15 420 - - 20 - - 22 -Diminishing returns begin with the

Refer to the following: The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000. -When the firm uses 40 units of labor, what is average total cost at this output?

Refer to the following: Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. -What is the marginal cost?

Refer to the following: -In the above figure, what is the TOTAL cost of producing 5 units of output?

Refer to the following: A firm produces 4,000 units of output using 500 workers. Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000. -What is average variable cost?

For a short-run production function in which output is determined by the number of workers utilized (capital stock held constant), which of the following is FALSE?

The marginal product of labor

Which of the following statements is FALSE?

Refer to the following: The capital stock is fixed at 40 units, the price of capital is $15 per unit, and the price of labor is $80 per unit. units of units of Labor Output 5 40 10 100 15 180 20 220 -How much does the 50th unit of output add to the firm's total cost?

Refer to the following: -In the above figure, what is the AVERAGE variable cost of producing 5 units of output?

Managers, Profits, and Markets

Demand, Supply, and Market Equilibrium

Marginal Analysis for Optimal Decisions

Basic Estimation Techniques

Theory of Consumer Behavior

Elasticity and Demand

Demand Estimation and Forecasting

Production and Cost in the Long Run

Production and Cost Estimation

Managerial Decisions in Competitive Markets

Managerial Decisions for Firms With Market Power

Strategic Decision Making in Oligopoly Markets

Advanced Pricing Techniques

Decisions Under Risk and Uncertainty

Government Regulation of Business

Filters