Chapter _8 Quiz KEY - Chapter#8QUIZ 1. B A production...

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Chapter #8 QUIZ 1. A production function measures the relation between B a. Input prices and output prices. b. The quantity of inputs and the quantity of output. ___ c. Input prices and the quantity of output. d. The quantity of inputs and input prices. e. None of the above 2. A short-run production function assumes that b a. The level of output is fixed. b. At least one input is a fixed input. ____ c. All inputs are fixed inputs. d. Both a and b . e. Both b and c 3. If average product is increasing, then marginal product A a. Must be greater than average product. b. Must be less than average product. ____ c. Must be increasing. d. Cannot be decreasing. e. Both a and c 4. Suppose you run a pizza shop and currently have two employees. If you hire a third employee, your output of pizzas per day rises from 55 to 65. If you hire a fourth employee, output rises to 80 per day. A fifth and sixth employee would cause output to rise to 90 and 95 per day, respectively. Pick the correct statement: B a. Diminishing returns set in with the hiring of the fourth worker. b.
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Chapter _8 Quiz KEY - Chapter#8QUIZ 1. B A production...

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