Question : 21) Consider labour that hired for $18 per hour. If : 1384272

 

21) Consider labour that is hired for $18 per hour. If the last hour hired produces 8 units of output which sells for $2 per unit, that labour-hour adds ________ to the firm’s profit and so ________ labour should be hired.

A) -$128; more

B) -$2; less

C) $16; less

D) $16; more

E) $0; no

22) Consider labour hired for $18 per hour. If the last hour of labour hired produces 8 units of output which sells for $10 per unit, ________ labour should be hired in this situation since the wage is ________ MRP.

A) more; greater than

B) more; less than

C) less; greater than

D) less; less than

E) no; equal to

23) Consider labour hired for $1000 per week. If the last week of labour hired produces 0.25 units of output which sells for $5000 per unit, ________ labour should be hired in this situation since the wage is ________ MRP.

A) more; greater than

B) more; less than

C) less; greater than

D) less; less than

E) no; equal to

24) Consider a small firm that is producing winter jackets.  It can lease an additional sewing machine for one month for $750.  With this additional machine, the firm can produce an additional 6 jackets during that time period that it sells for $125 each.  Hiring the marginal machine adds ________ to the firm’s profit and so it should ________ the machine.

A) -$750; not lease

B) -$750; lease

C) $0; be indifferent as to whether to lease

D) $750; not lease

E) $750; lease

25) Consider a small firm that is producing winter jackets.  It can lease an additional sewing machine for one month for $1200.  With this additional machine, the firm can produce an additional 7 jackets during that time period that it sells for $250 each.  Hiring the marginal machine adds ________ to the firm’s profit and so it should ________ the machine.

A) -$1200; not lease

B) $0; be indifferent as to whether to lease

C) $1200; lease

D) $550; lease

E) $1750; lease

26) Consider a small firm that is producing winter jackets.  It can lease an additional sewing machine for one month for $2400.  With this additional machine, the firm can produce an additional 4 jackets during that time period that it sells for $550 each.  Hiring the marginal machine adds ________ to the firm’s profit and so it should ________ the machine.

A) -$2400; not lease

B) -$200; not lease

C) $0; be indifferent as to whether to lease

D) $200; lease

E) $2400; lease

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

27) Refer to Table 13-1. The marginal product of the 15th unit of the factor of production is

A) -2.

B) 0.

C) 2.

D) 82.

E) 84.

28) Refer to Table 13-1. The marginal product of the 12th unit of the factor of production is

A) 4.

B) 14.

C) 20.

D) 44.

E) 64.

29) Refer to Table 13-1. The total revenue of the output produced by 12 units of the factor is

A) $120.

B) $520.

C) $640.

D) $768.

E) $1440.

30) Refer to Table 13-1. The total revenue of the output produced by 15 units of the factor is

A) $860.

B) $150.

C) $640.

D) $780.

E) $1440.