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.
