Ch8 - Ch8 Student In the table below and answer the next 4...

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Ch8 Student: ___________________________________________________________________________ In the table below and answer the next 4 questions: 1. In the above table, the average product of labor when 4 units of labor are employed is A. 22. B. 20. C. 19. D. 16. 2. In the above table, the marginal product of the fifth unit of labor is A. 16. B. 10. C. 4. D. -2. 3. In the above table, diminishing returns begin with the A. first unit of labor. B. third unit of labor. C. fourth unit of labor. D. sixth unit of labor. 4. In the above table, marginal product is negative when _____ units of labor are employed. A. 5 units of labor are employed. B. 6 units of labor are employed. C. 7 units of labor are employed. D. both b and c . 5. A production function measures the relation between 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
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6. A short-run production function assumes that 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 The next 4 questions refer to the following: Amount of total output produced from various combinations of labor and capital. 7. If capital is fixed at two units, what is the marginal product of the fourth unit of labor? A. 60 B. 80 C. 100 D. 420 E. none of the above 8. If capital is fixed at one unit, diminishing returns begin with the A. first unit of labor. B. second unit of labor. C. third unit of labor. D. fourth unit of labor. E. none of the above 9. If labor is fixed at three units, how much does the third unit of capital add to total output? A. 60 B. 80 C. 110 D. 130 E. none of the above 10. If labor is fixed at 5 units, how much does the second unit of capital add to total output? A. 490 B. 390 C. 50 D. 100 E. none of the above
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11. If average product is increasing, then marginal product 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 12. Which of the following statements is FALSE? A. A firm plans in the long run and operates in the short run. B. In the short run, a firm can change some but not all of its inputs. C. In the long run all inputs are variable. D. In the short run all inputs are fixed. 13. 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: A. Diminishing returns set in with the hiring of the fourth worker. B. Diminishing returns set in with the hiring of the fifth worker.
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Ch8 - Ch8 Student In the table below and answer the next 4...

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