Question 1

The marginal product of labor

Accepted Answer

A) measures how output changes as the wage rate changes. 
B) is less than the average product of labor when the average product of labor is decreasing. 
C) is negative when adding another unit of labor decreases output. 
D) both a and b 
E) both b and c 
A) measures how output changes as the wage rate changes. 
B) is less than the average product of labor when the average product of labor is decreasing. 
C) is negative when adding another unit of labor decreases output. 
D) both a and b 
E) both b and c

Question 2

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?

Accepted Answer

A) $0.32 
B) $16 
C) $20 
D) $1,280 
E) none of the above 
A) $0.32 
B) $16 
C) $20 
D) $1,280 
E) none of the above

Question 3

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
  Which of the following input combinations can produce the same level of output?

Accepted Answer

A) 4K,2L and 3K,2L 
B) 3K,2L and 2K,3L 
C) 2K,3L and 4K,2L 
D) all of the above 
A) 4K,2L and 3K,2L 
B) 3K,2L and 2K,3L 
C) 2K,3L and 4K,2L 
D) all of the above

Question 4

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
  If the capital stock is fixed at one unit,how much does the third unit of labor add to total output?

Accepted Answer

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

Question 5

Given the table below,what is average fixed cost when 300 units of output are produced?

Accepted Answer

A) $0.60 
B) $3.00 
C) $160 
D) $500 
E) none of the above 
A) $0.60 
B) $3.00 
C) $160 
D) $500 
E) none of the above

Question 6

Based on the following table,the additional cost of producing the 170th unit of output is:

Accepted Answer

A) $10.50 
B) $11.50 
C) $13 
D) $15 
E) none of the above 
A) $10.50 
B) $11.50 
C) $13 
D) $15 
E) none of the above

Question 7

In the table above,what is the maximum amount of output that can be produced with two workers?

Accepted Answer

A) 50 
B) 125 
C) 150 
D) 250 
E) 320 
A) 50 
B) 125 
C) 150 
D) 250 
E) 320

Question 8

Above is a firm's average product of labor and marginal product of labor curves.The price of labor is $60 per unit.When the firm uses 6 units of labor,what is marginal cost?

Accepted Answer

A) $0.25 
B) $5 
C) $6.67 
D) $7.06 
E) $10.25 
A) $0.25 
B) $5 
C) $6.67 
D) $7.06 
E) $10.25

Question 9

Given the table below,as the number of workers increases from 10 to 15,output per worker

Accepted Answer

A) increases from 290 to 420 
B) increases from 28 to 29 
C) decreases from 29 to 28 
D) decreases from 30 to 26 
E) none of the above 
A) increases from 290 to 420 
B) increases from 28 to 29 
C) decreases from 29 to 28 
D) decreases from 30 to 26 
E) none of the above

Question 10

out the table and answer the question below.   The marginal product of the fifth unit of labor is

Accepted Answer

A) 16. 
B) 10. 
C) 4. 
D) -2. 
A) 16. 
B) 10. 
C) 4. 
D) -2.

Question 11

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 120 units of labor,how much output does it produce?

Accepted Answer

A) 7,000 units 
B) 70 units 
C) 8,400 units 
D) 9,200 units 
E) 7,500 units 
A) 7,000 units 
B) 70 units 
C) 8,400 units 
D) 9,200 units 
E) 7,500 units

Question 12

Given the table below,what is the marginal cost of the 250th unit of output?

Accepted Answer

A) $0.14 
B) $2.40 
C) $4.00 
D) $7.40 
E) none of the above 
A) $0.14 
B) $2.40 
C) $4.00 
D) $7.40 
E) none of the above

Question 13

To answer,refer to the following: "Ford built 18 vehicles per auto employee in North America last year,while GM could only manage 12." The Wall Street Journal)
In comparison with GM,Ford had a higher

Accepted Answer

A) average product of labor. 
B) average product of capital. 
C) marginal product of labor. 
D) marginal product of capital. 
A) average product of labor. 
B) average product of capital. 
C) marginal product of labor. 
D) marginal product of capital.

Question 14

The capital stock is fixed at 50 units,the price of capital is $30 per unit,and the price of labor is $25 per unit.   Given the above,if the firm produces 20 units of output,what is average fixed cost?

Accepted Answer

A) $1.50 
B) $50 
C) $150 
D) $600 
E) none of the above 
A) $1.50 
B) $50 
C) $150 
D) $600 
E) none of the above

Question 15

Fill out the table and answer the question below.   The average product of labor when 4 units of labor are employed is

Accepted Answer

A) 22. 
B) 20. 
C) 19. 
D) 16. 
A) 22. 
B) 20. 
C) 19. 
D) 16.

Question 16

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 120 units of labor,what is its marginal cost at this output?

Accepted Answer

A) $65 
B) $70 
C) $50 
D) $56 
E) $120 
A) $65 
B) $70 
C) $50 
D) $56 
E) $120

Question 17

Based on the following table,what is average fixed cost when 200 units of output are produced?

Accepted Answer

A) $2.80 
B) $80 
C) $150 
D) $1.50 
E) none of the above 
A) $2.80 
B) $80 
C) $150 
D) $1.50 
E) none of the above

Question 18

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 120 units of labor,what is its AVC at this output?

Accepted Answer

A) $40 
B) $70 
C) $60 
D) $56 
E) none of the above 
A) $40 
B) $70 
C) $60 
D) $56 
E) none of the above

Question 19

Which of the following statements is FALSE?

Accepted Answer

A) A firm plans in the long run and operates in the short run. 
B) In the short run,a firm can change some but not all of its inputs. 
C) In the long run all inputs are variable. 
D) In the short run all inputs are fixed. 
A) A firm plans in the long run and operates in the short run. 
B) In the short run,a firm can change some but not all of its inputs. 
C) In the long run all inputs are variable. 
D) In the short run all inputs are fixed.

Question 20

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.   At what output does the firm reach minimum average variable cost?

Accepted Answer

A) 7,400 
B) 8,000 
C) 100 
D) 6,000 
E) 600 
A) 7,400 
B) 8,000 
C) 100 
D) 6,000 
E) 600

The marginal product of labor

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?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. Which of the following input combinations can produce the same level of output?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If the capital stock is fixed at one unit,how much does the third unit of labor add to total output?

Given the table below,what is average fixed cost when 300 units of output are produced?

Based on the following table,the additional cost of producing the 170th unit of output is:

In the table above,what is the maximum amount of output that can be produced with two workers?

Above is a firm's average product of labor and marginal product of labor curves.The price of labor is $60 per unit.When the firm uses 6 units of labor,what is marginal cost?

Given the table below,as the number of workers increases from 10 to 15,output per worker

out the table and answer the question below. The marginal product of the fifth unit of labor is

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 120 units of labor,how much output does it produce?

Given the table below,what is the marginal cost of the 250th unit of output?

To answer,refer to the following: "Ford built 18 vehicles per auto employee in North America last year,while GM could only manage 12." The Wall Street Journal) In comparison with GM,Ford had a higher

The capital stock is fixed at 50 units,the price of capital is $30 per unit,and the price of labor is $25 per unit. Given the above,if the firm produces 20 units of output,what is average fixed cost?

Fill out the table and answer the question below. The average product of labor when 4 units of labor are employed is

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 120 units of labor,what is its marginal cost at this output?

Based on the following table,what is average fixed cost when 200 units of output are produced?

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 120 units of labor,what is its AVC at this output?

Which of the following statements is FALSE?

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. At what output does the firm reach minimum average variable cost?

Managers, profits, and Markets

Demand, supply, and Market Equilibrium

Marginal Analysis for Optimal Decision Making

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

Exam 8: Production and Cost in the Short Run

The marginal product of labor

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?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. Which of the following input combinations can produce the same level of output?

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. If the capital stock is fixed at one unit,how much does the third unit of labor add to total output?

Given the table below,what is average fixed cost when 300 units of output are produced?

Based on the following table,the additional cost of producing the 170th unit of output is:

In the table above,what is the maximum amount of output that can be produced with two workers?

Above is a firm's average product of labor and marginal product of labor curves.The price of labor is $60 per unit.When the firm uses 6 units of labor,what is marginal cost?

Given the table below,as the number of workers increases from 10 to 15,output per worker

out the table and answer the question below. The marginal product of the fifth unit of labor is

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 120 units of labor,how much output does it produce?

Given the table below,what is the marginal cost of the 250th unit of output?

To answer,refer to the following: "Ford built 18 vehicles per auto employee in North America last year,while GM could only manage 12." The Wall Street Journal) In comparison with GM,Ford had a higher

The capital stock is fixed at 50 units,the price of capital is $30 per unit,and the price of labor is $25 per unit. Given the above,if the firm produces 20 units of output,what is average fixed cost?

Fill out the table and answer the question below. The average product of labor when 4 units of labor are employed is

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 120 units of labor,what is its marginal cost at this output?

Based on the following table,what is average fixed cost when 200 units of output are produced?

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 120 units of labor,what is its AVC at this output?

Which of the following statements is FALSE?

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. At what output does the firm reach minimum average variable cost?

Managers, profits, and Markets

Demand, supply, and Market Equilibrium

Marginal Analysis for Optimal Decision Making

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