Question

1) Which of the following inputs can be changed in the short run?

Land owned

Labor employed

Machinery

Office Space

2) In a perfectly competitive market:

price is always equal to marginal revenue.

price is always greater than marginal revenue.

price is always greater than marginal cost.

price is always equal to marginal cost.

3) The following table shows the total output, number of workers employed, variable costs, and fixed costs of a firm.

Number of Workers	Total Output (units)	Variable Costs ($)	Fixed Costs ($)
0	0	0	150
1	25	10	150
2	55	20	150
3	86	30	150
4	110	40	150
5	130	50	150
6	145	60	150
7	155	70	150
8	160	80	150

Refer to the table above. Suppose that the only variable input that the firm uses is labor. What is the wage paid to a worker in the firm?

4) A firm produces 200 units of a good when it employs 7 workers. The marginal product of the eighth worker is 46 units. If the eighth worker is hired, the firm's total product will increase to:

246 units.

208 units.

322 units.

228 units.