When Total Physical Product Is at Its Maximum, Marginal Physical Product Must Be

When total physical product is at its maximum, marginal physical product must be

(A)greater than one

(B)equal to one

(C)equal to zero

(D)less than zero

(E)constant

Based on the information given in this production function, all of the following can be concluded EXCEPT:

(A)Diminishing marginal returns starts after the fourth worker.

(B)When total product goes up, marginal product is positive.

(C)When marginal product becomes negative, total product starts going down.

(D)A profit-maximizing firm would not hire the eighth worker.

(E)This data represents a perfectly competitive firm.

Assume a business begins to hire labor for a brand new factory with a fixed amount of capital. As the business hires additional laborers the marginal product will

(A)increase at first, but eventually decrease

(B)decrease at first, but eventually increase

(C)increase consistently because of diminishing returns

(D)increase consistently because of advantages from specialization

(E)increase consistently because diseconomies of scale

The marginal physical product of the second worker is

(A)10

(B)15

(C)20

(D)35

(E)50

After a 50 % increase in all inputs, a firms output increases by 100 %. This firm is experiencing

(A)a loss of profits

(B)constant marginal costs

(C)diseconomies of scale

(D)decreasing returns to scale

(E)increasing returns to scale

This table is the short-run production function for picking onions. According to the table, what is true about the marginal product of the fifth worker?

(A)It’s the highest that can be achieved.

(B)It’s lower than the third worker’s marginal product because of diminishing returns.

(C)It’s higher than the marginal product of all other workers combined.

(D)It’s higher than the first worker’s marginal product because of increasing returns.

(E)It’s going up because of increasing marginal returns.

This question refers to the following table. It is the short-run production function for a firm operating in a perfectly competitive market. The firm produces onions using one variable resource, labor. Diminishing marginal product occurs after the hiring of which worker?

(A)6th worker

(B)5th worker

(C)4th worker

(D)3rd worker

(E)2nd worker

Autofun produces toy cars and pays each worker $400 per week. Four workers can produce 50 cars per week and five workers can produce 60 cars per week. The marginal product per week of the fifth worker is

(A)$6.67

(B)$400

(C)6.67 cars

(D)15 cars

(E)10 cars

If marginal product > average product, what must be true?

(A)Average product must be going down.

(B)Average product must be going up.

(C)Marginal product must be going up.

(D)Total product is going down.

(E)Total product is maximized.

What economic concept is best illustrated by the relationship shown in the graph above?

(A)law of diminishing marginal returns

(B)law of diminishing marginal utility

(C)opportunity cost

(D)production possibilities curve

(E)absolute advantage