Question :
61.RefertoTable13-4.SupposethatCharles’smathtutoringcompanyhasafixedcostof$50permonthforhiscellphone.EachworkercostsCharles$60perday.Asoutputincreasesfrom45to70students,Charles’stotalcostcurve
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61.RefertoTable13-4.SupposethatCharles’smathtutoringcompanyhasafixedcostof$50permonthforhiscellphone.EachworkercostsCharles$60perday.Asoutputincreasesfrom45to70students,Charles’stotalcostcurve
a.increasesbutgetsflatter.
b.increasesandgetssteeper.
c.decreasesandgetsflatter.
d.decreasesbutgetssteeper.
Table13-5
NumberofWorkers
Output
0
0
1
10,000
2
19,000
3
27,000
4
32,000
5
35,000
6
36,000
62.RefertoTable13-5.Themarginalproductofthethirdworkeris
a.9,000units.
b.8,000units.
c.7,000units.
d.5,000units.
63.RefertoTable13-5.Themarginalproductofthefourthworkeris
a.9,000units.
b.8,000units.
c.7,000units.
d.5,000units.
64.RefertoTable13-5.Diminishingmarginalproductbeginswiththeadditionofthe
a.secondworker.
b.thirdworker.
c.fourthworker.
d.fifthworker.
65.RefertoTable13-5.Assumethatfixedcostsare$500,andvariablecostsare$100perworker.Forthisfirm,whataretheshapesoftheproductionfunctionandthetotal-costcurve?
a.Boththeproductionfunctionandtotal-costcurveareincreasingatanincreasingrate.
b.Boththeproductionfunctionandtotal-costcurveareincreasingatadecreasingrate.
c.Theproductionfunctionisincreasingatanincreasingrate,whereasthetotal-costfunctionisincreasingatadecreasingrate.
d.Theproductionfunctionisincreasingatadecreasingrate,whereasthetotal-costfunctionisincreasingatanincreasingrate.
Table13-6
WoodenChairFactory
NumberofWorkers
NumberofMachines
Output(chairsproduced
perhour)
MarginalProductofLabor
CostofWorkers
CostofMachines
TotalCost
1
2
5
2
2
10
3
2
20
4
2
35
5
2
55
6
2
70
7
2
80
66.RefertoTable13-6.EachworkerattheWoodenChairFactorycosts$12perhour.Thecostofeachmachineis
a.$72
b.$112
c.$576
d.$616
67.RefertoTable13-6.EachworkerattheWoodenChairFactorycosts$12perhour.Thecostofeachmachineis$20perdayregardlessofthenumberofchairsproduced.Whatisthetotaldailycostofproducingatarateof55chairsperhourifthefactoryoperates8hoursperday?
a.$480
b.$576
c.$520
d.$616
68.RefertoTable13-6.EachworkerattheWoodenChairFactorycosts$12perhour.Thecostofeachmachineis$20perdayregardlessofthenumberofchairsproduced.Assumethenumberofmachinesdoesnotchange.Ifthefactoryproducesatarateof78chairsperhour,whatisthetotalmachinecostperday?
a.$20
b.$40
c.$240
d.Weareunabletodeterminetotalmachinecostsfromtheinformationgiven.
69.RefertoTable13-6.EachworkerattheWoodenChairFactorycosts$12perhour.Thecostofeachmachineis$20perdayregardlessofthenumberofchairsproduced.Ifthefactoryproducesatarateof35chairsperhour,whatisthetotallaborcostperhour?
a.$40
b.$48
c.$384
d.$424
70.RefertoTable13-6.AssumetheWoodenChairFactorycurrentlyemploys5workers.Whatisthemarginalproductoflaborwhenthefactoryaddsa6thworker?
a.5chairsperhour
b.15chairsperhour
c.25chairsperhour
d.70chairsperhour