Homework set _2

Homework set _2 - Homework Set #2 ECN 212 Dr. Roberts...

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Homework Set #2 is due no later than Monday, October 15, 2007.  Answers must be  turned in on a NCS Pearson Scantron, form # 229633, available at the ASU Bookstore.  Answer sheets must be marked in pencil and contain your name and 10 digit Affiliate  Identification Number. 1. While total product is increasing, marginal product is a. increasing. b. zero. c. negative. d. decreasing. e. positive. 2. Which of the following does not refer to diminishing marginal returns? a. Closing part of a restaurant because of the lack of servers b. Increasing numbers of seat belts in an automobile c. Increasing numbers of students in one classroom d. Increasing numbers of assistant vice presidents as the size of the firm increases e. Application of increasing amounts of fertilizer to a field of corn 3. If marginal product is 8 units and average product is 4 units, the next worker will cause a. marginal product to decrease. b. average product to increase by 4 units. c. marginal product to decrease by 4 units. d. marginal product to decrease by 2 units and average product to increase by 2 units. e. average product to increase. 4. Assume that one laborer produces 6 units of output, two laborers produce 14 units, three produce 20 units, and four produce 24 units. If the cost is $20 per laborer and fixed costs are $100, the average total cost at 24 units of output is a. $7.50. b. $3.33.
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Homework set _2 - Homework Set #2 ECN 212 Dr. Roberts...

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