Question 1

The marginal product of labor is equal to the

Accepted Answer

The marginal product of labor measures the increase in output obtained from a one unit increase in labor, so the correct choice is D. A is not correct because the marginal product of labor does not necessarily reflect incremental cost. B is not correct because the marginal product of labor does not necessarily reflect incremental profit. C is not correct because the marginal product of labor measures the increase in output obtained from a one unit increase in labor, not the increase in labor necessary to generate a one unit increase in output.

Question 2

Figure 13-1
 
-Refer to Figure 13-1.Suppose the production function shifts from TP1 to TP2.Such a shift in the total product curve is most likely due to an increase in the firm's

Accepted Answer

An increase in the total product curve (TP) indicates a higher level of output for a given level of input. This can only be achieved through an increase in productivity, which is reflected in the shift from TP1 to TP2. Increases in costs of production or product price would generally lead to a contraction of the total product curve, while changes in market share would not directly affect the level of output for a given level of input.

Question 3

For a firm,the relationship between the quantity of inputs and quantity of output is called the

Accepted Answer

The production function shows the relationship between the quantity of inputs (e.g. labor, capital, materials) used by a firm and the quantity of output produced. It is a fundamental concept in microeconomics and is used to analyze the efficiency and productivity of a firm's production process. A and C are incorrect as profit function and total-cost function are different concepts that have their own specific definitions and uses in economics. D is too vague and does not accurately describe the concept of the relationship between inputs and output.

Question 4

Grace is a self-employed artist.She can make 20 pieces of pottery per week.She is considering hiring her sister Kate to work for her.Kate can make 18 pieces of pottery per week.What would be the total output of Grace's firm if she hired her sister?

Accepted Answer

If Grace hired Kate, their combined output would be 20 + 18 = 38 pieces of pottery per week. Therefore, the correct answer is D.

Question 5

Eldin is a house painter.He can paint three houses per week.He is considering hiring his friend Murphy.Murphy can paint five houses per week.What is the maximum total output possible if Eldin hires Murphy?

Accepted Answer

Eldin can paint 3 houses per week, and Murphy can paint 5 houses per week. Together, they can paint a maximum of 8 houses per week (3+5=8). Therefore, if Eldin hires Murphy, the maximum total output possible is 8 houses per week, which is option D.

Question 6

Table 13-1
 
-Refer to Table 13-1.What is total output when 1 worker is hired?

Accepted Answer

The total output when 1 worker is hired is 30, as indicated in Table 13-1.

Question 7

Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired.The firm is able to produce 176 units of output per day when 16 workers are hired,holding other inputs fixed.The marginal product of the 16th worker is

Accepted Answer

The marginal product of the 16th worker can be calculated by finding the difference in output when the 16th worker is hired compared to when only 15 workers are hired.

Marginal product of the 16th worker = Output with 16 workers - Output with 15 workers

= 176 units/day - 165 units/day

= 11 units/day

Therefore, the marginal product of the 16th worker is 11 units of output (option B).

Question 8

The marginal product of any input is the

Accepted Answer

The marginal product of any input refers to the additional output that results from adding one more unit of that input while holding all other inputs constant. Therefore, it is the increase in total output obtained from one additional unit of that input. Choices A, B, and C are not correct definitions of marginal product.

Question 9

The marginal product of an input in the production process is the increase in

Accepted Answer

The marginal product of an input in the production process is the additional output that is produced with the addition of one more unit of that input. Therefore, the correct answer is D, which states the quantity of output obtained from an additional unit of that input. Choices A, B, and C pertain to revenue and profit, which are not the same as marginal product.

Question 10

Figure 13-1
 
-Refer to Figure 13-1.Suppose the production function shifts from TP2 to TP1.Such a shift in the total product curve is most likely due to a decrease in the firm's

Accepted Answer

A shift in the production function from TP2 to TP1 indicates a decrease in the productivity of the firm, which ultimately leads to a decrease in total output.

Question 11

Let L represent the number of workers hired by a firm,and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L = 12,Q = 122)and (L = 13,Q = 132).Then the marginal product of the 13th worker is

Accepted Answer

The marginal product of labor (MPL) is the additional output that results from hiring one more worker while holding other inputs constant. It can be calculated as:

MPL = (change in output) / (change in labor)

Using the two given points:

MPL = (132 - 122) / (13 - 12) = 10

Therefore, the marginal product of the 13th worker is 10 units of output.

Question 12

Figure 13-1
 
-Refer to Figure 13-1.Which of the following could explain why the total product curve would shift from TP2 to TP1?

Accepted Answer

The answer of Figure 13-1
 
-Refer to Figure 13-1.Which of...

Question 13

Eldin is a house painter.He can paint three houses per week.He is considering hiring his friend Murphy.Together,Eldin and Murphy can paint five houses per week.What is Murphy's marginal product?

Accepted Answer

The answer of Eldin is a house painter.He can paint...

Question 14

When a firm's only variable input is labor,then the slope of the production function measures the

Accepted Answer

The slope of the production function with only labor as a variable input represents the marginal product of labor, which is the additional output produced by adding one more unit of labor.

Question 15

The marginal product of labor can be defined as the change in

Accepted Answer

The marginal product of labor is the additional output that results from adding one more unit of labor, holding all other inputs constant. Therefore, it can be defined as the change in output divided by the change in labor.

Question 16

Let L represent the number of workers hired by a firm,and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L=6,Q=147)and (L=7,Q=174).The marginal product of the seventh worker is

Accepted Answer

The marginal product of labor (MPL) is the additional output produced by one additional unit of labor. It is calculated as the change in output divided by the change in labor: MPL = (ΔQ/ΔL).

Using the two points provided, we can calculate the change in output and change in labor from the 6th to the 7th worker:

ΔQ = 174 - 147 = 27
ΔL = 7 - 6 = 1

Therefore, the marginal product of the 7th worker is MPL = ΔQ/ΔL = 27/1 = 27.

The correct answer is B) 27 units of output.

Question 17

Let L represent the number of workers hired by a firm,and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L = 5,Q = 125)and (L = 6,Q = 162).Then the marginal product of the 6th worker is

Accepted Answer

The marginal product of the 6th worker is calculated by the change in output divided by the change in the number of workers: (162 - 125) / (6 - 5) = 37 units of output.

Question 18

Grace is a self-employed artist.She can make 20 pieces of pottery per week.She is considering hiring her sister Kate to work for her.Both she and Kate can make 35 pieces of pottery per week.What is Kate's marginal product?

Accepted Answer

Kate's marginal product is the additional output produced by hiring her. Grace alone makes 20 pieces, and together they make 35 pieces, so Kate's marginal product is 35 - 20 = 15 pieces of pottery.

Question 19

Figure 13-1
 
-Refer to Figure 13-1.Which of the following could explain why the total product curve would shift from TP1 to TP2?

Accepted Answer

The shift from TP1 to TP2 indicates an increase in total output for a given level of inputs, which is likely due to the firm adopting improved production technology. The other options (A, B, and D) would likely have negative effects on total output and shift the curve downwards.

Question 20

Suppose a firm currently produces 225 units of output per day with 15 workers.The firm is able to produce 235 units of output with a 16th worker.What is the marginal product of the 16th worker?

Accepted Answer

The marginal product of the 16th worker is the additional output produced by adding one more worker. The firm increases output from 225 to 235 units, so the marginal product is 235 - 225 = 10 units.

Quiz 13: The Costs of Production.

The marginal product of labor is equal to the

Figure 13-1 -Refer to Figure 13-1.Suppose the production function shifts from TP1 to TP2.Such a shift in the total product curve is most likely due to an increase in the firm's

For a firm,the relationship between the quantity of inputs and quantity of output is called the

Grace is a self-employed artist.She can make 20 pieces of pottery per week.She is considering hiring her sister Kate to work for her.Kate can make 18 pieces of pottery per week.What would be the total output of Grace's firm if she hired her sister?

Eldin is a house painter.He can paint three houses per week.He is considering hiring his friend Murphy.Murphy can paint five houses per week.What is the maximum total output possible if Eldin hires Murphy?

Table 13-1 -Refer to Table 13-1.What is total output when 1 worker is hired?

Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired.The firm is able to produce 176 units of output per day when 16 workers are hired,holding other inputs fixed.The marginal product of the 16th worker is

The marginal product of any input is the

The marginal product of an input in the production process is the increase in

Figure 13-1 -Refer to Figure 13-1.Suppose the production function shifts from TP2 to TP1.Such a shift in the total product curve is most likely due to a decrease in the firm's

Let L represent the number of workers hired by a firm,and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L = 12,Q = 122) and (L = 13,Q = 132) .Then the marginal product of the 13th worker is

Figure 13-1 -Refer to Figure 13-1.Which of the following could explain why the total product curve would shift from TP2 to TP1?

Eldin is a house painter.He can paint three houses per week.He is considering hiring his friend Murphy.Together,Eldin and Murphy can paint five houses per week.What is Murphy's marginal product?

When a firm's only variable input is labor,then the slope of the production function measures the

The marginal product of labor can be defined as the change in

Let L represent the number of workers hired by a firm,and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L=6,Q=147) and (L=7,Q=174) .The marginal product of the seventh worker is

Let L represent the number of workers hired by a firm,and let Q represent that firm's quantity of output.Assume two points on the firm's production function are (L = 5,Q = 125) and (L = 6,Q = 162) .Then the marginal product of the 6th worker is

Grace is a self-employed artist.She can make 20 pieces of pottery per week.She is considering hiring her sister Kate to work for her.Both she and Kate can make 35 pieces of pottery per week.What is Kate's marginal product?

Figure 13-1 -Refer to Figure 13-1.Which of the following could explain why the total product curve would shift from TP1 to TP2?

Suppose a firm currently produces 225 units of output per day with 15 workers.The firm is able to produce 235 units of output with a 16th worker.What is the marginal product of the 16th worker?