Ch18Table 181Number Of Workers LOutput Of
Ch.18
Table 18-1
Number of Workers (L)
Output of
Firm A
Output of
Firm B
Output of
Firm C
Output of
Firm D
1
100
100
100
100
2
200
300
190
80
3
300
600
270
60
4
400
1,000
340
40
1.Refer to Table 18-1. Which firm’s production function exhibits diminishing marginal product?
a.
Firm A
b.
Firm B
c.
Firm C
d.
Firm D
ANS: C
2. Which of the following statements is correct?
a.
An increase in the supply of other factors, such as capital, will increase the demand for labor.
b.
Labor-saving technology will increase the demand for labor.
c.
Labor-augmenting technology will decrease the demand for labor.
d.
A decrease in the price of output will increase the demand for labor.
ANS: A
3. Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage. If the firm pays a wage of $700 per week and the marginal product of labor equals 20 units per week, then the marginal cost of producing an additional unit of output is
a.
$35
b.
$70
c.
$700
d.
We do not have enough information to answer this question.
ANS: A
Figure 18-1. On the graph, L represents the quantity of labor and Q represents the quantity of output per week.
4. Refer to Figure 18-1. Suppose the firm hires each unit of labor for $600 per week, and each unit of output sells for $9. What is the value of the marginal product of the third worker?
a.
$540
b.
$600
c.
$675
d.
$810
ANS: C
5. Refer to Figure 18-1. Suppose the firm hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to maximize its profit?
a.
2
b.
3
c.
4
d.
5
ANS: A
6. Refer to Figure 18-1. Suppose the firm sells its output for $12 per unit, and it pays each of its workers $700 per week. The value of the marginal product of the fifth worker is
a.
$540
b.
$700
c.
$720
d.
$1,080
ANS: A
7. Refer to Figure 18-1. The shape of the curve suggests the presence of
a.
an inverted production function.
b.
diminishing total product.
c.
Table 18-1
Number of Workers (L)
Output of
Firm A
Output of
Firm B
Output of
Firm C
Output of
Firm D
1
100
100
100
100
2
200
300
190
80
3
300
600
270
60
4
400
1,000
340
40
1.Refer to Table 18-1. Which firm’s production function exhibits diminishing marginal product?
a.
Firm A
b.
Firm B
c.
Firm C
d.
Firm D
ANS: C
2. Which of the following statements is correct?
a.
An increase in the supply of other factors, such as capital, will increase the demand for labor.
b.
Labor-saving technology will increase the demand for labor.
c.
Labor-augmenting technology will decrease the demand for labor.
d.
A decrease in the price of output will increase the demand for labor.
ANS: A
3. Suppose that a competitive firm hires labor up to the point at which the value of the marginal product equals the wage. If the firm pays a wage of $700 per week and the marginal product of labor equals 20 units per week, then the marginal cost of producing an additional unit of output is
a.
$35
b.
$70
c.
$700
d.
We do not have enough information to answer this question.
ANS: A
Figure 18-1. On the graph, L represents the quantity of labor and Q represents the quantity of output per week.
4. Refer to Figure 18-1. Suppose the firm hires each unit of labor for $600 per week, and each unit of output sells for $9. What is the value of the marginal product of the third worker?
a.
$540
b.
$600
c.
$675
d.
$810
ANS: C
5. Refer to Figure 18-1. Suppose the firm hires each unit of labor for $700 per week, and each unit of output sells for $9. How many workers will the firm hire to maximize its profit?
a.
2
b.
3
c.
4
d.
5
ANS: A
6. Refer to Figure 18-1. Suppose the firm sells its output for $12 per unit, and it pays each of its workers $700 per week. The value of the marginal product of the fifth worker is
a.
$540
b.
$700
c.
$720
d.
$1,080
ANS: A
7. Refer to Figure 18-1. The shape of the curve suggests the presence of
a.
an inverted production function.
b.
diminishing total product.
c.