25) The marginal product of labor curve shows the change in total product result

Question

25) The marginal product of labor curve shows the change in total product resulting from a:
a) one-unit increase in the quantity of a particular resource used, letting other resources vary.
b) one-unit increase in the quantity of a particular resource used, holding constant other resources.
c) change in the cost of a variable resource.
d) change in the cost of a fixed resource.

26) When the total product curve is falling, the:
a) marginal product of labor is zero.
b) marginal product of labor is negative.
c) average product of labor is increasing.
d) average product of labor must be negative.

27) When marginal product reaches its maximum, what can be said of total product?
a) total product must be at its maximum
b) total product starts to decline even if marginal product is positive
c) total product is increasing if marginal product is still positive
d) total product levels off

28) Variable costs are:
a) sunk costs.
b) multiplied by fixed costs.
c) costs that change with the level of production.
d) defined as the change in total cost resulting from the production of an additional unit of output.

29) Which is not a fixed cost?
a) monthly rent of $1,000 contractually specified in a one-year lease
b) an insurance premium of $50 per year, paid last month
c) an attorney's retainer of $50,000 per year
d) a worker's wage of $15 per hour

30) If you know that with 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25, then total cost at this output level is:
a) $93.75. b) $97.78. c) $750. d) $880.

Explanation / Answer

the answer will be OPTION b) one-unit increase in the quantity of a particular resource used, holding constant other resources. c) average product of labor is increasing. b) total product starts to decline even if marginal product is positive c) costs that change with the level of production. a) monthly rent of $1,000 contractua...

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