Question 1

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the sixth worker is 1.What is the total output produced by six workers?

Accepted Answer

The marginal productivity of labor for the sixth worker is the additional output produced by the sixth worker. Since it's 1, it means the total output produced by six workers is one more than the output produced by five workers. Without the specific output numbers for fewer workers, we can't directly calculate the total output for six workers from the information given. However, assuming the question implies we can deduce this information (as is common in theoretical questions), and given the choices provided, the correct answer would be to select an option as if we had enough information. Since the direct calculation approach isn't applicable without seeing the figure or having more data, any choice would be a guess. However, the correct approach in a real-world scenario would be to say it's not known from the information provided. But, given the nature of this setup, we proceed with the assumption that the total output for six workers is a specific number from the choices given, which is a misunderstanding of the setup here.

Question 2

Were it not for the law of diminishing marginal returns,we could grow the world's food supply from a flowerpot.

Accepted Answer

Given the current state of technology,the law of diminishing marginal returns limits the amount of additional output yielded from additional labor working the flowerpot.Revoking the "law" would allow output to increase at a non-decreasing rate when more labor is applied to the flowerpot.

Question 3

-Lectures in microeconomics can be delivered either by an instructor (labor)or a movie (capital)or any combination of both.Each minute of the instructor's time delivers the same amount of information as a minute of the movie.Which graph in the above figure best represents the isoquants for lectures in microeconomics when capital per day is on the vertical axis and labor per day is on the horizontal axis?

Accepted Answer

The isoquants for lectures in microeconomics would be straight lines with a negative slope, indicating perfect substitutability between labor and capital.

Question 4

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the seventh worker is 2.What is the average output per worker when Albert's Pretzels employs seven workers by six workers?

Accepted Answer

The answer of 
-The above figure shows the short-run production...

Question 5

Skateboards are produced according to the production function,q = 10K^0.25L^0.5 - L.Given that capital is fixed at 16 units in the short run,what quantity of labor is needed to produce 36 units of output?

Accepted Answer

Given the production function q = 10K^0.25L^0.5 and K = 16, to find L when q = 36, substitute q and K into the equation: 36 = 10(16)^0.25L^0.5. Solving for L gives L = 4.

Question 6

Consider the following short-run production function: q = 5L² - 1/3 L³.At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

Accepted Answer

The answer of Consider the following short-run production function: q...

Question 7

Explain the difference between diminishing returns to labor and diminishing marginal returns to labor.

Accepted Answer

The answer of Explain the difference between diminishing returns to...

Question 8

-At Joey's Lawncutting Service,a lawn mower cannot cut grass without a laborer.A laborer cannot cut grass without a lawn mower.Which graph in the above figure best represents the isoquants for Joey's Lawncutting Service when capital per day is on the vertical axis and labor per day is on the horizontal axis?

Accepted Answer

The isoquants are L-shaped because neither capital nor labor can be used alone to cut grass.

Question 9

If marginal productivity is decreasing as more labor is hired,then average productivity must be decreasing as well.

Accepted Answer

The change in average productivity is not determined by the change in marginal productivity.Average productivity can be increasing even when marginal productivity is decreasing.Average productivity can only be decreasing when marginal productivity is below average productivity.

Question 10

-The above figure shows the short-run production function for Albert's Pretzels.The average productivity of labor when the firm employs five workers is

Accepted Answer

The average productivity of labor is calculated by dividing total output by the number of workers. If the total output with five workers is 30, then the average productivity is 30/5 = 6.

Question 11

The actual time length of the short run is determined by when diminishing marginal returns start.

Accepted Answer

The actual time length of the short run is a function of how long it would take to adjust all inputs.

Question 12

Suppose the production function for T-shirts can be represented as q = L^0.25K^0.75.Show that the marginal productivity of labor diminishes in the short run.

Accepted Answer

The answer of Suppose the production function for T-shirts can...

Question 13

-Lectures in microeconomics can be delivered either by an instructor (labor)or a movie (capital)or any combination of both.Yet,it gets harder and harder to substitute more movies for an instructor the more movies are already used.Which graph in the above figure best represents the isoquants for lectures in microeconomics when capital per day is on the vertical axis and labor per day is on the horizontal axis?

Accepted Answer

The answer of 
-Lectures in microeconomics can be delivered either...

Question 14

Skateboards are produced according to the production function,q = 10K^0.25L^0.5 - L.At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?

Accepted Answer

The correct answer is A because the total product begins to decline when the marginal product of labor is less than the average product of labor. The marginal product of labor is the change in total product divided by the change in labor, and the average product of labor is the total product divided by labor. When the marginal product of labor is less than the average product of labor, the average product of labor is decreasing. In this case, the marginal product of labor is 2.5K^0.25L^-0.5, and the average product of labor is 10K^0.25L^-0.5 - L. When K is fixed at 16, the marginal product of labor is 2.5(16)^0.25L^-0.5 = 10L^-0.5, and the average product of labor is 10(16)^0.25L^-0.5 - L = 40L^-0.5 - L. The marginal product of labor is less than the average product of labor when 10L^-0.5 < 40L^-0.5 - L, which simplifies to L > 100. Therefore, the total product begins to decline when L > 100.

Question 15

A firm operating with diminishing total returns cannot be profit maximizing.

Accepted Answer

This firm could produce more output with fewer inputs.This cannot be profit maximizing.

Question 16

-In the above figure,Graph D with Capital on the vertical axis and labor on the horizontal axis implies that

Accepted Answer

The graph shows that as more labor is employed, the marginal product of labor increases.

Question 17

For a linear production function,q = f(L,K)= 4L + 2K,what is the short-run production function given that capital is fixed at  = 50?

Accepted Answer

The answer of For a linear production function,q = f(L,K)=...

Question 18

At low levels of production,marginal productivity of labor increases as labor increases.At high levels of production,marginal productivity of labor decreases as labor increases.Are these two statements contradictory? Explain.

Accepted Answer

The answer of At low levels of production,marginal productivity of...

Question 19

Each additional worker produces two extra units of output until the first three units are produced for some production function.After the third unit is produced each additional worker produces one extra unit of output.What are the total product of labor,average product of labor and marginal product of labor for the first five units of production associated with this production function?

Accepted Answer

The answer of Each additional worker produces two extra units...

Question 20

Describe the relationship between marginal productivity and average productivity.Use calculus or a graph to support your answer.

Accepted Answer

The answer of Describe the relationship between marginal productivity and...

Quiz 6: Firms and Production

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the sixth worker is 1.What is the total output produced by six workers?

Were it not for the law of diminishing marginal returns,we could grow the world's food supply from a flowerpot.

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the seventh worker is 2.What is the average output per worker when Albert's Pretzels employs seven workers by six workers?

Skateboards are produced according to the production function,q = 10K^0.25L^0.5 - L.Given that capital is fixed at 16 units in the short run,what quantity of labor is needed to produce 36 units of output?

Consider the following short-run production function: q = 5L² - 1/3 L³.At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

Explain the difference between diminishing returns to labor and diminishing marginal returns to labor.

If marginal productivity is decreasing as more labor is hired,then average productivity must be decreasing as well.

-The above figure shows the short-run production function for Albert's Pretzels.The average productivity of labor when the firm employs five workers is

The actual time length of the short run is determined by when diminishing marginal returns start.

Suppose the production function for T-shirts can be represented as q = L^0.25K^0.75.Show that the marginal productivity of labor diminishes in the short run.

Skateboards are produced according to the production function,q = 10K^0.25L^0.5 - L.At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?

A firm operating with diminishing total returns cannot be profit maximizing.

-In the above figure,Graph D with Capital on the vertical axis and labor on the horizontal axis implies that

For a linear production function,q = f(L,K) = 4L + 2K,what is the short-run production function given that capital is fixed at = 50?

At low levels of production,marginal productivity of labor increases as labor increases.At high levels of production,marginal productivity of labor decreases as labor increases.Are these two statements contradictory? Explain.

Describe the relationship between marginal productivity and average productivity.Use calculus or a graph to support your answer.

Quiz 6: Firms and Production

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the sixth worker is 1.What is the total output produced by six workers?

Were it not for the law of diminishing marginal returns,we could grow the world's food supply from a flowerpot.

-The above figure shows the short-run production function for Albert's Pretzels.Suppose the marginal productivity of labor for the seventh worker is 2.What is the average output per worker when Albert's Pretzels employs seven workers by six workers?

Skateboards are produced according to the production function,q = 10K0.25L0.5 - L.Given that capital is fixed at 16 units in the short run,what quantity of labor is needed to produce 36 units of output?

Consider the following short-run production function: q = 5L2 - 1/3 L3.At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

Explain the difference between diminishing returns to labor and diminishing marginal returns to labor.

If marginal productivity is decreasing as more labor is hired,then average productivity must be decreasing as well.

-The above figure shows the short-run production function for Albert's Pretzels.The average productivity of labor when the firm employs five workers is

The actual time length of the short run is determined by when diminishing marginal returns start.

Suppose the production function for T-shirts can be represented as q = L0.25K0.75.Show that the marginal productivity of labor diminishes in the short run.

Skateboards are produced according to the production function,q = 10K0.25L0.5 - L.At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?

A firm operating with diminishing total returns cannot be profit maximizing.

-In the above figure,Graph D with Capital on the vertical axis and labor on the horizontal axis implies that

For a linear production function,q = f(L,K) = 4L + 2K,what is the short-run production function given that capital is fixed at = 50?

At low levels of production,marginal productivity of labor increases as labor increases.At high levels of production,marginal productivity of labor decreases as labor increases.Are these two statements contradictory? Explain.

Describe the relationship between marginal productivity and average productivity.Use calculus or a graph to support your answer.

Skateboards are produced according to the production function,q = 10K^0.25L^0.5 - L.Given that capital is fixed at 16 units in the short run,what quantity of labor is needed to produce 36 units of output?

Consider the following short-run production function: q = 5L² - 1/3 L³.At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?

Suppose the production function for T-shirts can be represented as q = L^0.25K^0.75.Show that the marginal productivity of labor diminishes in the short run.

Skateboards are produced according to the production function,q = 10K^0.25L^0.5 - L.At what quantity of labor does total product begin to decline given that capital is fixed at 16 units in the short-run?