Question : 41) The total output produced by a firm divided by : 1245232

 

 

41) The total output produced by a firm divided by the quantity of workers employed by the firm is the definition of

A) the marginal product of labor.

B) the division of labor.

C) the average product of labor.

D) the average cost of production.

 

42) After Suzie, owner of Suzie’s Sweet Shop, hires her 8th worker the average product of labor declines. Which of the following statements must be true?

A) The marginal product of the 8th worker is negative.

B) The marginal product of the 8th worker is less than the average product of labor before the 8th worker was hired.

C) Suzie’s profits would be greater if she did not hire the 8th worker.

D) The average product of labor is negative.

43) Which of the following statements is true?

A) The average product of labor is at its maximum when the average product of labor equals the marginal product of labor.

B) The average product of labor is at its minimum when the average product of labor equals the marginal product of labor.

C) The average product of labor tells us how much output changes as the quantity of workers hired changes.

D) Whenever the marginal product of labor is greater than the average product of labor the average product of labor must be decreasing.

 

44) The marginal product of labor is calculated using the formula

A) L/Q.

B) ΔL/ΔQ.

C) ΔQ/ΔL.

D) Q/L.

 

45) Which of the following describes how output changes in the short run? Because of specialization and the division of labor, as more workers are hired

A) output will first increase at an increasing rate, then output will increase at a decreasing rate.

B) output will first decrease at an increasing rate, then increase at a decreasing rate.

C) the marginal product of labor will first decrease, then increase at a decreasing rate.

D) the marginal product of labor will first be negative and then will be positive.

 

46) If 11 workers can produce 53 units of output while 12 workers can produce 56 units of output, what is the marginal product of the 12th worker?

A) 0.16

B) 3

C) 4.67

D) 36

 

Table 8-3

Quantity of Workers

Quantity of Boxes

Marginal Product of Labor

Average Product of Labor

0

    0

—–

—–

1

  50

 

 

2

200

 

 

3

240

 

 

4

264

 

 

5

284

 

 

 

47) Refer to Table 8-3. The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny’s House of Boxes. The capital used to produce the boxes is fixed. Diminishing returns to labor are first observed in this example after Manny hires the ________ worker.

A) second

B) third

C) fourth

D) fifth

 

48) Refer to Table 8-3. The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny’s House of Boxes. The capital used to produce the boxes is fixed. The highest value of the average product is labor is ________ when Manny hires ________ workers.

A) 80; 3

B) 100; 3

C) 100; 2

D) 80; 4

49) Refer to Table 8-3. The table above refers to the relationship between the quantity of workers employed and the number of cardboard boxes produced per day by Manny’s House of Boxes. The capital used to produce the boxes is fixed. The average product of labor will equal 60 boxes when Manny hires

A) the second worker.

B) the third worker.

C) the fourth worker.

D) the fifth worker.

 

50) If marginal product is greater than average product, then

A) average product must be decreasing.

B) marginal product must be decreasing.

C) marginal product must be increasing.

D) marginal product could either be increasing or decreasing.