For Questions 8 to 11, please use the following information for a competitive fi
ID: 1193090 • Letter: F
Question
For Questions 8 to 11, please use the following information for a competitive firm
Workers Output per day
0 0
2 65
3 115
5 200
6 235
7 265
8 290
9 310
10 325
8. This production function is best characterized by:
a) Diminishing marginal product
b) Increasing marginal product
c) Diminishing marginal product, then increasing marginal product
d) Increasing marginal product, then decreasing marginal product
9. With 5 workers employed, the production function is characterized by:
a) Marginal Product greater than Average Product
b) Marginal Product equal to Average Product
c) Marginal Product less than Average Product
d) Marginal Product plus Average Product equal Output
10. With 9 workers employed, the production function is characterized by:
a) Marginal Product greater than Average Product
b) Marginal Product equal to Average Product
c) Marginal Product less than Average Product
d) Marginal Product plus Average Product equal Output
11. If workers receive $100 per day, the variable cost of producing 115 units of output is:
a) $11,500
b) $300
c) $115
d) Cannot be determined from the information given
Explanation / Answer
8) Marginal product is decreasing on adding extra labor. Hence correct option is (A)
9) 5th worker Marginal product is 85 (200 -115) Hence here Marginal product is increasing and when MP increases it increases more fastly than the Average product. Correct answer is (A)
10) correct answer is (C). At the level of 9 MP is decreasing and when MP decreases it decreases faster than the AP
11) 100*3 =300 correct answer is (B)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.