ECON-102-Fall-2012-Exam-3-Version_A_and_C

D the answer cannot be determined with the

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Unformatted text preview: , the marginal product of that worker will equal: a. 14 bushels. b. 15 bushels. c. 12 bushels. d. The answer cannot be determined with the information available. 2. You own a small deli that produces sandwiches, soups, and other items for customers in your town. Which of the following is a fixed input in the production function at your deli? a. the dining room where customers eat their meals b. loaves of bread used to make sandwiches c. cans of tomato sauce used to make soups d. employees hired to help make the food 3. Oscar has negotiated a lease for his sporting goods store in which he is required to pay $2,500 per month in rent. Oscar pays his staff $9 per hour to sell sporting goods and his monthly electricity bill averages $700, depending on his total hours of operation. Oscar's fixed costs of production equal: a. $2,500 per month. b. $3,200 per month. c. $9 per hour multiplied by total hours of work plus $700. d. $9 per hour multiplied by total hours of work plus $3,200. 4. Austin's total fixed cost is $4,000. Austin employs 40 workers and pays each worker $120. The average product of labor is 50, and the marginal product of the twentieth worker is 20. What is the marginal cost of the last unit produced by the last worker Austin hired? a. $6 b. $200 c. $2.40 d. $240 5. Suppose...
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This note was uploaded on 01/27/2014 for the course ECON 102 taught by Professor Kim during the Fall '08 term at University of Illinois, Urbana Champaign.

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