Question 1

-Using the above table, the total product and average product when 5 workers are employed are
A) 61 and 21, respectively.
B) 62 and 13, respectively.
C) 62 and 15, respectively.
D) 61 and 12.2, respectively.

Accepted Answer

The answer of 
-Using the above table, the total product...

Question 2

Recently Apple Computer developed Apple's new iTunes Music Store, which offers more than 200,000 songs from five major record labels, for use with Apple's iPod and iMac. More than a million songs were downloaded the first week alone! In economic terms, CEO Tim Cook helped convert capital and labor inputs into products consumers use. Any activity that results in the conversion of resources into products that can be used in consumption is
A) not profitable.
B) a start up venture.
C) demand.
D) production.

Accepted Answer

The activity described in the passage is production, which involves converting resources into products that can be used in consumption. This is a fundamental economic activity and a key driver of economic growth and development. Option A is incorrect because production can be profitable if it generates more revenue than the cost of producing the goods or services. Option B is incorrect because the passage does not provide any information about whether Apple's iTunes Music Store was a start-up venture. Option C is incorrect because demand refers to the willingness and ability of consumers to buy goods and services, not the production process itself.

Question 3

-Using the above table, the total product and average product when 3 workers are employed are
A) 36 and 12, respectively.
B) 39 and 13, respectively.
C) 37 and 27, respectively.
D) 40 and 10, respectively.

Accepted Answer

The total product when 3 workers are employed is 39, and the average product is calculated by dividing the total product by the number of workers, which is 39/3 = 13.

Question 4

Which of the following statement is correct?
A) When Marginal Product is greater than Average Product, Average Product is increasing.
B) When Marginal Product is greater than Average Product, Average Product is decreasing.
C) When Marginal Product is greater than Average Product, Average Product is equal to Total Product.
D) When Marginal Product is greater than Average Product, Total Product is increasing at a decreasing rate.

Accepted Answer

When Marginal Product is greater than Average Product, it means that the last unit of input added is producing more output than the previous units. This causes the Average Product to increase because the total output is increasing at a faster rate than the total input.

Question 5

-Using the above table, the marginal product of the 4th worker is
A) 12.
B) 13.
C) 14.
D) 15.

Accepted Answer

The answer of 
-Using the above table, the marginal product...

Question 6

-Using the above table, the marginal product of the 2nd worker is
A) 12.
B) 14.
C) 15.
D) 13.

Accepted Answer

The answer of 
-Using the above table, the marginal product...

Question 7

-In the above table, the marginal product of the fourth worker is
A) 30.
B) 25.
C) 20.
D) 15.

Accepted Answer

The answer of 
-In the above table, the marginal product...

Question 8

At Phil's Pretzel Stand, we found the following: 4 laborers produced 66 pretzels
5 laborers produced 76 pretzels
6 laborers produced 85 pretzels
7 laborers produced 88 pretzels
What was the marginal physical product of the seventh laborer?
A) 10 pretzels
B) 9 pretzels
C) 3 pretzels
D) none of the above due to insufficient information

Accepted Answer

To find the marginal physical product of the seventh laborer, we need to consider the difference in the number of pretzels produced when the sixth and seventh laborers were added. 
So, the marginal physical product of the seventh laborer is the difference between the number of pretzels produced by 7 laborers and 6 laborers, which is 88 - 85 = 3 pretzels. Therefore, the answer is C.

Question 9

-In the above table, the average product for 5 units of labor is
A) 20.0.
B) 22.5.
C) 25.0.
D) 15.0.

Accepted Answer

The average product for a given amount of labor is calculated by dividing the total output by the number of units of labor. Without the specific table data, the correct answer cannot be determined from the provided options. However, if the average product for 5 units of labor is stated to be 25.0, it means that the total output divided by 5 units of labor equals 25. This is a hypothetical scenario since the actual table data is not provided.

Question 10

At Phil's Pretzel Stand, we found the following: 4 laborers produced 66 pretzels
5 laborers produced 76 pretzels
6 laborers produced 85 pretzels
7 laborers produced 88 pretzels
What was the marginal product of the sixth laborer?
A) 10 pretzels
B) 9 pretzels
C) 6 pretzels
D) 3 pretzels

Accepted Answer

The marginal product of the sixth laborer is the increase in output from adding the sixth laborer, which is the difference between the output with 6 laborers (85 pretzels) and the output with 5 laborers (76 pretzels), resulting in 9 pretzels.

Question 11

-Using the above table, the average product and marginal product when 4 workers are employed are
A) 13 and 13, respectively.
B) 13 and 14, respectively.
C) 13 and 9, respectively.
D) 14 and 13, respectively.

Accepted Answer

Average product = Total product / Number of workers = 52 / 4 = 13Marginal product = Change in total product / Change in number of workers = (52 - 39) / (4 - 3) = 13

Question 12

-In the above table, the average product of the 3rd worker is
A) 5.
B) 4.
C) 3.
D) 12.

Accepted Answer

The answer of 
-In the above table, the average product...

Question 13

If four workers were hired and we discovered that we could produce 88 units of production, what is the average physical product of labor?
A) 44
B) 352
C) 11
D) 22

Accepted Answer

The average physical product of labor is calculated by dividing the total output by the number of workers. Here, 88 units divided by 4 workers equals 22.

Question 14

As the quantity of labor increases while the amount of other inputs are held constant, marginal product of labor will
A) increase continuously.
B) decrease continuously.
C) initially decrease and then increase.
D) initially increase and then decrease.

Accepted Answer

Initially, as more labor is added, the marginal product of labor will increase. This is because the additional worker brings complementary skills and specialization of tasks, which increases overall productivity. However, as more workers are added, there will be diminishing returns to labor. The fixed amount of other inputs will limit the extent to which each additional worker can contribute to production, resulting in a decrease in the marginal product of labor. Therefore, the marginal product of labor will initially increase and then decrease.

Question 15

The average product of labor is equal to
A) total product divided by quantity of labor.
B) change in total product divided by quantity of labor.
C) total product divided by change in quantity of labor.
D) change in total product divided by change in quantity of labor.

Accepted Answer

The average product of labor (APL) is the total output produced by a firm divided by the total quantity of labor used. Therefore, the correct formula is APL = Total product / Quantity of labor.

Question 16

-In the above table, the average product for 3 units of labor is
A) 30.0.
B) 26.7.
C) 26.3.
D) 25.0.

Accepted Answer

The average product for 3 units of labor is calculated by dividing the total product by the number of units of labor. If the total product for 3 units of labor is 80, then the average product is 80/3 = 26.7.

Question 17

The change in output caused by a one-unit change in labor is referred to as the
A) compounded physical product of labor.
B) average product of labor.
C) marginal product of labor.
D) total product of labor.

Accepted Answer

The change in output caused by a one-unit change in labor is referred to as the marginal product of labor. Marginal product of labor is the change in total output that results from employing an additional unit of labor.

Question 18

When total product is increasing at an increasing rate, marginal product is
A) positive and increasing.
B) positive and decreasing.
C) constant.
D) negative.

Accepted Answer

When total product is increasing at an increasing rate, it means that the addition of each unit of input is causing a larger increase in output. This implies that marginal product, which measures the increase in output caused by the addition of one more unit of input, is positive and increasing. Therefore, choice A is correct.

Question 19

-In the above table, the marginal product of the sixth worker is
A) 10.
B) 25.
C) 20.
D) 15.

Accepted Answer

The answer of 
-In the above table, the marginal product...

Question 20

When total product is increasing at a decreasing rate, marginal product is
A) positive and increasing.
B) positive and decreasing.
C) constant.
D) negative.

Accepted Answer

When the total product is increasing at a decreasing rate, it means the marginal product is positive but decreasing. As the output is increasing, the additional output added by each additional unit of input is decreasing. Therefore, the best choice is B, positive and decreasing marginal product.

Quiz 22: The Firm: Cost and Output Determination

-Using the above table, the total product and average product when 5 workers are employed are

-Using the above table, the total product and average product when 3 workers are employed are

Which of the following statement is correct?

-Using the above table, the marginal product of the 4th worker is

-Using the above table, the marginal product of the 2nd worker is

-In the above table, the marginal product of the fourth worker is

At Phil's Pretzel Stand, we found the following: 4 laborers produced 66 pretzels 5 laborers produced 76 pretzels 6 laborers produced 85 pretzels 7 laborers produced 88 pretzels What was the marginal physical product of the seventh laborer?

-In the above table, the average product for 5 units of labor is

At Phil's Pretzel Stand, we found the following: 4 laborers produced 66 pretzels 5 laborers produced 76 pretzels 6 laborers produced 85 pretzels 7 laborers produced 88 pretzels What was the marginal product of the sixth laborer?

-Using the above table, the average product and marginal product when 4 workers are employed are

-In the above table, the average product of the 3rd worker is

If four workers were hired and we discovered that we could produce 88 units of production, what is the average physical product of labor?

As the quantity of labor increases while the amount of other inputs are held constant, marginal product of labor will

The average product of labor is equal to

-In the above table, the average product for 3 units of labor is

The change in output caused by a one-unit change in labor is referred to as the

When total product is increasing at an increasing rate, marginal product is

-In the above table, the marginal product of the sixth worker is

When total product is increasing at a decreasing rate, marginal product is