Study Guide for Final Exam chapters 7 8 11 12 13

Study Guide for Final Exam chapters 7 8 11 12 13 - ECON...

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ECON 2100 Study Guide for Final Exam Chapters 7, 8, 11, 12, 13 Name: __________________________ Date: _____________ 1. The total product curve: A) shows the relation between output and the quantity of a variable input for varying levels of the fixed input. B) will become flatter as output increases, if there are diminishing returns to the variable input. C) will be downward sloping, if there are diminishing returns to the variable input. D) will become horizontal, when the marginal product of the variable input is constant. Use the following to answer question 2: Table: Labor and Output Quantity of labor Total output 0 0 1 12 2 22 3 30 4 36 5 40 6 43 7 44 2. (Table: Labor and Output) Referring to the accompanying table, the average product when 4 workers are employed is: A) 9. B) 36. C) 10. D) 6. Page 1
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3. The idea of diminishing returns to an input in production suggests that if a local college adds more and more custodians, the marginal product of labor for the custodial staff will ______ over time. A) increase at an increasing rate B) increase at a decreasing rate C) decrease D) not change Use the following to answer question 4: Figure: Average Total Cost Curve 4. (Figure: Average Total Cost Curve) In the accompanying figure, the total cost of producing 3 pairs of boots is approximately: A) $24. B) $72. C) $75. D) $216. Page 2
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Use the following to answer question 5: Figure: Marginal Product of Labor Quantity of labor Marginal product of labor 0 19 1 17 2 15 3 13 4 11 5 9 6 7 7 5 8 5. (Figure: Marginal Product of Labor) Using the marginal product of labor curve in the accompanying figure, the total product of labor for 3 workers is: A) 51 bushels. B) 45 bushels. C) 39 bushels. D) 15 bushels. Page 3
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Use the following to answer question 6: Table: Labor and Output Quantity of labor Total output 0 0 1 12 2 22 3 30 4 36 5 40 6 43 7 44 6. (Table: Labor and Output) Referring to the accompanying table, the marginal product of the fifth worker is: A) 8. B) 4. C) 3. D) 40. 7. Buford Bus Manufacturing installs a new assembly line. As a result, the output produced per worker increases. The marginal cost of output at Buford: A) will increase. (The MC curve will shift left.) B) will decrease. (The MC curve will shift right.) C) will be unchanged. D) is at its maximum. 8. Rebecca knows that Becca Furniture's marginal cost curve is above the average total cost curve. This means Becca Furniture's average total cost curve: A) must be rising. B) must be flat. C) must be falling. D) may be rising, falling, or flat depending on other things. Page 4
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Use the following to answer question 9: Figure: Variable, Fixed, and Total Costs Points on graph Quantity of labor (workers), L Quantity of wheat (bushels), Q Variable cost, VC Fixed cost, FC Total cost, TC = FC + VC A 0 0 $0 $400 $400 B 1 19 200 400 600 C 2 36 400 400 800 D 3 51 600 400 1,000 E 4 64 800 400 1,200 F 5 75 1,000 400 1,400 G 6 84 1,200 400 1,600 H 7 91 1,400 400 1,800 I 8 96 1,600 400 2,000 9. (Figure and Table: Variable, Fixed, and Total Costs) In the accompanying figure,
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This note was uploaded on 03/16/2010 for the course ECON 2100 taught by Professor Klimenko during the Spring '08 term at Georgia Institute of Technology.

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Study Guide for Final Exam chapters 7 8 11 12 13 - ECON...

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