Economics for Managers Ch 8 Quiz
Given the table below, if labor is fixed at three units, how much does the third unit of capital add to total output? picture Amount of total output produced from various combinations of labor and capital. A. 60 B. 80 C. 110 D. 130 E. none of the above
A
The capital stock is fixed at 5 units, the price of capital is $60 per unit, and the price of labor is $20 per unit. picture Based on the above, how much does the 12th unit of output add to the firm's total variable cost? A. $2.50 B. $4 C. $5 D. $20 E. $40
A
The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit. picture Given the above, how much does the 23rd unit of output add to the firm's total cost? A. $75 B. $135 C. $750 D. $1,350 E. none of the above
A
Suppose a firm is hiring 20 workers at a wage rate of $60. The average product of labor is 30, the last worker added 12 units of output, and total fixed cost is $3,600. What is marginal cost? A. $.20 B. $5 C. $240 D. $720 E. none of the above
B
Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500. Suppose that installation of a new assembly line increases the output produced per worker. The cost per unit of output A. will increase B. will decrease C. will be unchanged D. is at its maximum E. is at its minimum
B
Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500.What is average variable cost? A. $0.63 B. $1.60 C. $3.20 D. $10.00 E. none of the above
B
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. picture If the capital stock is fixed at one unit, how much does the third unit of labor add to total output? A. 20 B. 40 C. 60 D. 80 E. none of the above
B
picture Above is a firm's average product of labor and marginal product of labor curves. The price of labor is $60 per unit. When the firm uses 6 units of labor, what is marginal cost? A. $0.25 B. $5 C. $6.67 D. $7.06 E. $10.25
B
picture. In the table above, diminishing returns A. begin with the first unit of labor B. begin with the third unit of labor C. begin with the fourth unit of labor D. begin with the fifth unit of labor E. do not occur because output is positive for all levels of labor usage.
B
Fill out the table and answer the question below. picture The average product of labor when 4 units of labor are employed is A. 22 B. 20 C. 19 D. 16
C
Picture In the above figure, what is the AVERAGE total cost of producing 10 units of output? A. $4 B. $8 C. $12 D. $50 E. $360
C
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000. picture When the firm uses 120 units of labor, how much output does it produce? A. 7,000 units B. 70 units C. 8,400 units D. 9,200 units E. 7,500 units
C
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. picture If the amount of capital increases from 3 to 4 units, the marginal product of the fourth unit of labor A. decreases by 3 units B. increases by 8 units C. increases by 5 units D. decreases by 12 units E. none of the above
C
If a firm is producing a given level of output in an economically efficient manner, then it must be the case that A. this is the lowest cost method of producing that output B. each input is producing its maximum marginal product C. this output level is the most that can be produced with the given level of inputs D. both a and c E. none of the above
D
Given the table below, how much does the 13th worker add to total output? picture A. 28 units B. 29 units C. 130 units D. 420 units E. none of the above
E
Given the table below, what is average fixed cost when 300 units of output are produced? picture A. $0.60 B. $3.00 C. $160 D. $500 E. none of the above
E
Short-run average cost is A. always greater than long-run average cost B. always less than long-run average cost C. less than short-run marginal cost when short-run marginal cost is decreasing D. both a and c E. none of the above
E
The marginal product of labor A. measures how output changes as the wage rate changes B. is less than the average product of labor when the average product of labor is decreasing C. is negative when adding another unit of labor decreases output D. both a and b E. both b and c
E
