ECON 1B03 Study Guide - Midterm Guide: Average Variable Cost, Pencil, Marginal Product

• School: McMaster University
• Department: Economics
• Course: ECON 1B03
• Professor: All

Document Summary

Answer all questions on the scan sheet using hb pencil. Hand in the scan and this sheet separately. Identify the choice that best completes the statement or answers the question. ___: a production function is a relationship between inputs and quantity of output. inputs and revenue. inputs and costs. inputs and profit. The figure below depicts a production function for a firm that produces cookies. As the number of workers increases, total output decreases. total output increases, but at a decreasing rate: marginal product increases, but at a decreasing rate, marginal product increases at an increasing rate. The figure below depicts a total cost function for a firm that produces cookies. The changing slope of the total cost curve reflects: decreasing average variable cost, decreasing average total cost, decreasing marginal product. increasing fixed cost. ___: let l represent the number of workers hired by a firm and let q represent that firm"s quantity of output.