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9. The additional output obtained by adding another unit of labor to the product

ID: 1103204 • Letter: 9

Question

9. The additional output obtained by adding another unit of labor to the production process is called a. the marginal cost of labor b. the average output of labor c. a variable cost d. the marginal product of labor e the marginal utility of labor 10. In the range of increasing marginal returns, total product is a. increasing at a constant rate b. increasing at an increasing rate c. increasing at a decreasing rate d. decreasing at an increasing rate e. decreasing at a decreasing rate 11. If fixed cost at Q- 100 is $130, then a. fixed cost at Q-0 is SO b, fixed cost at Q = 0 is less than $130 c. fixed cost at Q = 200 is $260 d, fixed cost at Q 200 is $130 e. it is impossible to calculate fixed costs at any other quantity

Explanation / Answer

Q1
Answer
Option d
The addition product of an additional labor is called the marginal product of labor.

Q10
Answer
Option b
The total product is the sum of marginal product, if the marginal product is increasing then the total product also increases.

Q11
Answer
Option d
The fixed cost at Q=200 is $130
because fixed cost is constant at all level of production from 0 to maximum in short run.