On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing margi

On a 100-acre farm, a farmer is able to produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce 4,400 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing margi

61. For a firm, the production function
represents the relationship between

a. implicit
costs and explicit costs.

b. quantity
of inputs and total cost.

c. quantity
of inputs and quantity of output.

d. quantity
of output and total cost.

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

a. profit
function.

b. production
function.

c. total-cost
function.

d. quantity
function.

63. For a certain firm, the number of workers
hired is the only variable input. When this firm’s production function is
illustrated on a graph,

a. the
number of workers is measured on the horizontal axis and the quantity of output
is measured on the vertical axis.

b. the
number of workers is measured on the horizontal axis and variable cost is
measured on the vertical axis.

c. the
number of workers is measured on the horizontal axis and profit is measured on
the vertical axis.

d. total
cost is measured on the horizontal axis and the number of workers is measured
on the vertical axis.

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

a. total
revenue obtained from an additional unit of that input.

b. profit
obtained from an additional unit of that input.

c. total
revenue obtained from an additional unit of that input.

d. quantity
of output obtained from an additional unit of that input.

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

a. quantity
of labor.

b. quantity
of output.

c. total
cost.

d. marginal
product of labor.

66. 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 = 130). Then the marginal product of the 13th worker is

a. 8
units of output.

b. 10
units of output.

c. 122
units of output.

d. 130
units of output.

67. On a 100-acre farm, a farmer is able to
produce 3,000 bushels of wheat when he hires 2 workers. He is able to produce
4,400 bushels of wheat when he hires 3 workers. Which of the following
possibilities is consistent with the property of diminishing marginal product?

a. The
farmer is able to produce 5,600 bushels of wheat when he hires 4 workers.

b. The
farmer is able to produce 5,800 bushels of wheat when he hires 4 workers.

c. The
farmer is able to produce 6,000 bushels of wheat when he hires 4 workers.

d. All
of the above are correct.

68. Suppose a certain firm is able to produce 160
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). Then the marginal product of the 16th worker is

a. 10
units of output.

b. 11
units of output.

c. 16
units of output.

d. 176
units of output.

69. A total-cost curve shows the relationship
between the

a. quantity
of an input used and the total cost of production.

b. quantity
of output produced and the total cost of production.

c. total
cost of production and profit.

d. total
cost of production and total revenue.

70. Which of the following costs do not vary with
the amount of output a firm produces?

a. average
fixed costs

b. fixed
costs and average fixed costs

c. marginal
costs and average fixed costs

d. fixed
costs


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