ECON 1000 Chapter Notes - Chapter 11: Average Variable Cost, Diminishing Returns, Marginal Product
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9 Feb 2018
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Related Questions
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. |