Ch11_12_part2_Practice_Problems

In addition suppose that when the firm hires 4

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Unformatted text preview: units. b. 900 units. c. 700 units. d. 500 units. 17. Refer to Table 2. The marginal product of the fourth worker is a. 900 units. b. 800 units. c. 700 units. d. 500 units. 18. Refer to Table 2. Diminishing marginal product begins with the addition of the a. second worker. b. third worker. c. fourth worker. d. fifth worker. 19. Refer to Table 2. Assume that fixed costs are $500, and variable costs are $100 per worker. For this firm, what are the shapes of the production function and the total- cost curve? a. Both the production function and total- cost curve are increasing at an increasing rate. b. Both the production function and total- cost curve are increasing at a decreasing rate. c. The production function is incr...
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This document was uploaded on 04/06/2014 for the course ECON 1 at UCLA.

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