Question :
71) Refer to Table 7-4. The marginal product of labour : 1384201
71) Refer to Table 7-4. The marginal product of labour curve intersects the average product of labour curve from above when the firm changes the amount of labour per unit of time from
A) 0 to 1 units.
B) 1 to 2 units.
C) 2 to 3 units.
D) 3 to 4 units.
E) 4 to 5 units.
72) Refer to Table 7-4. Marginal product of labour begins decreasing with the ________ unit of labour hired. Average product of labour begins decreasing with the ________ unit of labour hired.
A) 4th; 3rd
B) 3rd; 2nd
C) 2nd; 3rd
D) 3rd; 4th
E) 4th; 5th
73) Suppose NHL hockey player Jarome Iginla is averaging three points per game going into the last game of the season in which he collects four points, thereby changing his average for the season. To use an analogy in economics, it could be said that average product increases
A) when total product increases.
B) when marginal product exceeds average product.
C) when average product exceeds marginal product.
D) when marginal product increases.
E) whenever marginal product is positive.
74) Consider a basket-producing firm with fixed capital. If the firm can produce 36 baskets per day with 3 workers and then increases productivity to 44 baskets per day with 4 workers, then which of the following statements is true?
A) The marginal product of the fourth worker is 11.
B) The firm has passed the point of diminishing average productivity.
C) The marginal product is above the average product.
D) The firm has not yet reached the point of diminishing marginal productivity.
E) With 4 workers, the firm’s average product of labour is 13.
75) Consider a basket-producing firm with fixed capital. If the firm can produce 36 baskets per day with 3 workers and then increases production to 44 baskets per day with 4 workers, then which of the following statements is true?
A) The marginal product of the fourth worker is 11.
B) With 4 workers, the marginal product is above the average product.
C) The firm has not yet reached the point of diminishing marginal productivity.
D) The firm has passed the point of diminishing marginal productivity.
E) With 4 workers, the firm’s average product of labour is 8.
76) Consider a basket-producing firm with fixed capital. If the firm can produce 24 baskets per day with 3 workers and then increases production to 36 baskets per day with 4 workers, then which of the following statements is definitely true?
A) The firm has passed the point of diminishing marginal productivity.
B) The marginal productivity of the fourth worker is 9.
C) The firm has passed the point of diminishing average productivity.
D) With 4 workers, the average product is greater than the marginal product.
E) With 4 workers, the marginal product is greater than the average product.
77) Consider a basket-producing firm with fixed capital. If the firm can produce 24 baskets per day with 3 workers and then increases production to 36 baskets per day with 4 workers, then which of the following statements is definitely true?
A) Marginal product for this firm is rising.
B) The marginal product of the fourth worker is 9.
C) Average product for this firm is rising.
D) The firm has passed the point of diminishing marginal productivity.
E) With 4 workers, the average product is greater than the marginal product.
78) Consider a house-construction firm with fixed capital. The firm can build 8 houses per year with 16 workers and 8.8 houses per year with 17 workers. If it is currently building 8.8 houses per year, which of the following is true?
A) Average product is at a maximum with 16 workers.
B) Average product is at a maximum with 17 workers.
C) The marginal product is below the average product.
D) The firm has already passed the point of diminishing marginal productivity.
E) The firm has not yet reached the point of diminishing average productivity.
79) If increasing quantities of a variable factor are applied to a given quantity of fixed factors, then the law of diminishing returns tells us that
A) the marginal product and the average product of the variable factor will eventually decrease.
B) the marginal product will eventually decrease with constant average product.
C) the average product will eventually decrease with constant marginal product.
D) the average product will eventually decrease, but only if total product is held constant.
E) total product will eventually begin to fall.
80) When a firm’s total-product curve is increasing at a decreasing rate
A) average product is zero.
B) marginal product is positive but declining.
C) the marginal-product curve lies below the average-product curve.
D) marginal product is negative and decreasing.
E) average product is falling.
