ECON 111 Study Guide - Quiz Guide: Marginal Product, Marginal Cost, Production Function
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Identify the choice that best completes the statement or answers the question. Tony is a wheat farmer, but he also spends part of his day teaching guitar lessons. Due to the popularity of his local country western band, tony has more students requesting lessons than he has time for if he is to also maintain his farming business. Tony charges an hour for his guitar lessons. One spring day, he spends 10 hours in his fields planting worth of seeds on his farm. He expects that the seeds he planted will yield. What is tony"s accounting profit: , , , . The figure depicts a production function for a firm that produces cookies. As the number of workers increases, what happens to the firm"s production: total output increases, but at a decreasing rate, marginal product increases, but at a decreasing rate, marginal product increases at an increasing rate, total output decreases.
