7) When at least one factor of production is fixed, firms require more and more workers to produce each additional unit of output. This describes
A) increasing marginal returns.
B) diminishing marginal returns.
C) learning by doing.
D) short-run adjustments.
Number of workers
Units of output
0
0
1
10
2
30
3
44
4
55
Table 5.1
8) Refer to Table 5.1, which gives a firm’s production function. Assume that all non-labor inputs are fixed. Diminishing marginal returns set in with the addition of the
A) third worker.
B) fourth worker.
C) fifth worker.
D) sixth worker.
9) Refer to Table 5.1, which gives a firm’s production function. Assume that all non-labor inputs are fixed. The marginal product of the fourth worker is
A) 12 units.
B) 11 units.
C) 5 units.
D) 0 units.
10) Refer to Table 5.1, which gives a firm’s production function. Assume that all non-labor inputs are fixed. Marginal product is maximized when the firm hires
A) 2 workers.
B) 3 workers.
C) 4 workers.
D) 5 workers.
Number of workers
Units of output
0
0
1
25
2
55
3
95
4
125
5
150
Table 5.2
11) Refer to Table 5.2, which gives a firm’s production function. Assume that all non-labor inputs are fixed. Diminishing returns set in with the addition of the
A) third worker.
B) fourth worker.
C) fifth worker.
D) sixth worker.
12) Refer to Table 5.2, which gives a firm’s production function. Assume that all non-labor inputs are fixed. The marginal product is maximized when the firm hires
A) 2 workers.
B) 3 workers.
C) 4 workers.
D) 5 workers.
13) Refer to Table 5.2, which gives a firm’s production function. Assume that all non-labor inputs are fixed. The marginal product of the fifth worker is
A) 0 units.
B) 10 units.
C) 25 units.
D) 30 units.
14) Refer to Table 5.2, which gives a firm’s production function. Assume that all non-labor inputs are fixed. The marginal product of the fourth worker is
A) 0 units.
B) 10 units.
C) 25 units.
D) 30 units.
15) Marginal product in the short run
A) increases at all levels of production.
B) diminishes at all levels of production.
C) may initially increase, then eventually decrease.
D) may initially decrease, then eventually increase.
16) Marginal product is defined as the change in ________ resulting from a one-unit increase in ________.
A) total product; input
B) total product; output
C) output; total product
D) total cost; output