【正文】 dditional worker. C) amount of extra output that is produced when one extra worker is added to a fixed amount of other factors. D) amount of extra output that is produced when one worker is added and other factors of production are increased proportionately. E) none of the above. Ans: CTotal Product with Various Input Combinations LandLabor 10 15 20 0 0 0 0 1 20 2 38 3 54 4 68 5 80 6 90 2. Suppose that production is defined by the function recorded in the table above. The marginal product of the 4th unit of labor, given 20 units of land, is equal to: A) B) C) D) E) none of the above Ans: B3. Suppose that production is defined by the function recorded in the table above. Given 6 units of labor, the marginal product of increasing land from 10 units to 15 units is equal to: A) 15. B) 12. C) 3. D) . E) none of the above. Ans: D4. Suppose that production were represented by the production function displayed in the table above. You would conclude that: A) land displayed diminishing returns. B) labor displayed diminishing returns. C) production displayed constant returns to scale. D) all of the above were true. E) none of the above were true. Ans: D5. The law of diminishing returns is expressed in terms of an eventual decline in the: A) total product of an input. B) average product of an input. C) marginal product of an input. D) returns to scale of an input. E) broadest general productivity measures only. Ans: C6. The short run is a period of time so short that: A) output cannot be varied. B) at least one input is fixed. C) all inputs are fixed. D) all inputs are variable. E) none of the above. Ans: B7. For the law of diminishing returns to hold, the missing blank in this table must be: Quantity Total of Labor Product 0 0 1 2 8 A) 4. B) 2. C) more than 4. D) less than 4. E) 0. Ans: C8. Suppose that you have drawn a total product curve for labor given a specific technology. Now let some sort of technological change increase the productivity of labor. A new total product curve would have to be drawn: A) above the old with a steeper slope for any level of employment greater than zero. B) above the old with a flatter slope for any level of employment greater than zero. C) below the old with a steeper slope for any level of employment greater than zero. D) below the old with a flatter slope for any level of employment greater than zero. E) directly over the old curve signifying no change in the total product graph。 only the marginal product graph would change. Ans: A 9. Suppose that production of a particular good requires two inputs, labor (L) and capital (K). If K is fixed, which of the panels in Figure 62 possibly represent(s) decreasing marginal productivity of labor? A) Panel a. B) Panel b. C) Panel c. D) All of the above. E) None of the above. Ans: B10. Suppose that two inputs, K and L, are variable and increase at the same rate. Which one of the panels in Figure 62 represents Increasing Return to Scale (IRS)? A) Panel a. B) Panel b. C) Panel c. D) Panel d. E) None of the above. Ans: C11. The production function is a technical law which: A) relates dollar inputs to dollar outputs. B) indicates the best way to bine outputs in the marketplace. C) indicates the best level of output to produce. D) describes a relationship between inputs and output in a production process. E) relates marginal products to factor prices. Ans: D12. Average product of labor measures: A) the addition to total output when an additional worker is hired. B) total product divided by total cost. C) the marginal product of the last worker multiplied by the wage rate. D) total product divided by the wage rate. E) total product divided by the quantity of labor. Ans: E13. The employment of which of the following inputs might be adjusted in the short run? A) Physical capital. B) Number of hours worked by labor. C) Units of energy required per unit output. D) Units of material required per unit output. E) None of the above. Ans: B14. When will the average product of labor increase? A) New technology improves the quality of capital used by labor. B) Marginal product of labor is increasing. C) Additional workers are hired. D) Both A and C. E) Both A and B. Ans: E15. As businesses grow, their need for capital typically tends to: A) increase. B) decrease. C) grow at the same rate as the business. D) remain unchanged. E) be acmodated automatically by the marketplace. Ans: ACHAPTER 71. Given the curves shown in Figure 71, the marginal cost of the 3rd unit of output is: A) $. B) $. C) $. D) $. E) none of the above. Ans: A2. Given the curves shown in Figure 71, the average variable cost of 3 units of output is: A) $. B) $. C) $. D) $. E) none of the above. Ans: B3. If the total cost of producing 10 units is $100 and the marginal cost of the eleventh unit is $21, then which of the following is NECESSARILY true? A) Total variable costs of 11 units are $121. B) Total fixed costs are $79. C) The marginal cost of the tenth unit is more than $21. D) The average total cost of 11 units is $11. E) The average total cost of 12 units is $12. Ans: D4. Which of the following is true at the quantity of output where average cost has reached its minimum level? A) AVC = FC. B) MC = AVC. C) MC = AC. D) AC = AFC. E) Output price = AVC. Ans: C5. Diminishing returns to factors of production cause: A) diminishing opportunity costs. B) the ratio of fixed costs to total costs to increase. C) average