diva , Noemi NAME PRINT LAST NAME, FIRST NAME SECTION# N00-01 COSTS, PROFIT, AND PRODUCTION Suppose ABC Corporation sold 2,000 units of output at a price of $2 per unit. If ABC Corporation's explicit cost to produce the 2,000 is $1,500 and its implicit cost to produce the 2,000 units is $2,000, then ABC Corp. has total revenue of 1. accounting profit of $1,500; $0; $1,000 $4,000; $1,000; $0 $4,000; $500; $2,500 $4,000; $2,500; $500 and an economic profit of an a. b. C. Firms encounter diminishing marginal product (diminishing returns) in the short run because: all inputs are fixed. at least one input is fixed. inputs can only be varied proportionally. at some point, firms must hire inferior labor to increase output. a. b. C. d. If total output is 40 units when 4 workers are employed and 48 units when 5 workers are employed, then: average product is 10 units when 4 workers are employed. the marginal product of the 5th worker is 8 units. average product must be falling because the marginal product of the 5th worker is lower than the average product for 4 workers. all of the above are true. a. b. C. Use the information in the table below to answer questions 4 and 5. Output Number of Workers 0. 8. 1 18 30 3 44 4 52 56 6. 52 The marginal product of the 4th worker is: 4 units of output. 12 units of output. 14 units of output. 18 units of output. 4. C. a. d. b. d. 2. 3.
diva , Noemi NAME PRINT LAST NAME, FIRST NAME SECTION# N00-01 COSTS, PROFIT, AND PRODUCTION Suppose ABC Corporation sold 2,000 units of output at a price of $2 per unit. If ABC Corporation's explicit cost to produce the 2,000 is $1,500 and its implicit cost to produce the 2,000 units is $2,000, then ABC Corp. has total revenue of 1. accounting profit of $1,500; $0; $1,000 $4,000; $1,000; $0 $4,000; $500; $2,500 $4,000; $2,500; $500 and an economic profit of an a. b. C. Firms encounter diminishing marginal product (diminishing returns) in the short run because: all inputs are fixed. at least one input is fixed. inputs can only be varied proportionally. at some point, firms must hire inferior labor to increase output. a. b. C. d. If total output is 40 units when 4 workers are employed and 48 units when 5 workers are employed, then: average product is 10 units when 4 workers are employed. the marginal product of the 5th worker is 8 units. average product must be falling because the marginal product of the 5th worker is lower than the average product for 4 workers. all of the above are true. a. b. C. Use the information in the table below to answer questions 4 and 5. Output Number of Workers 0. 8. 1 18 30 3 44 4 52 56 6. 52 The marginal product of the 4th worker is: 4 units of output. 12 units of output. 14 units of output. 18 units of output. 4. C. a. d. b. d. 2. 3.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 3
Transcribed Image Text:diva
, Noemi
NAME
PRINT LAST NAME, FIRST NAME
SECTION# N00-01
COSTS, PROFIT, AND PRODUCTION
Suppose ABC Corporation sold 2,000 units of output at a price of $2 per unit. If ABC
Corporation's explicit cost to produce the 2,000 is $1,500 and its implicit cost to produce
the 2,000 units is $2,000, then ABC Corp. has total revenue of
1.
accounting profit of
$1,500; $0; $1,000
$4,000; $1,000; $0
$4,000; $500; $2,500
$4,000; $2,500; $500
and an economic profit of
an
a.
b.
C.
Firms encounter diminishing marginal product (diminishing returns) in the short run
because:
all inputs are fixed.
at least one input is fixed.
inputs can only be varied proportionally.
at some point, firms must hire inferior labor to increase output.
a.
b.
C.
d.
If total output is 40 units when 4 workers are employed and 48 units when 5 workers are
employed, then:
average product is 10 units when 4 workers are employed.
the marginal product of the 5th worker is 8 units.
average product must be falling because the marginal product of the 5th worker is
lower than the average product for 4 workers.
all of the above are true.
a.
b.
C.
Use the information in the table below to answer questions 4 and 5.
Output
Number of Workers
0.
8.
1
18
30
3
44
4
52
56
6.
52
The marginal product of the 4th worker is:
4 units of output.
12 units of output.
14 units of output.
18 units of output.
4.
C.
a.
d.
b.
d.
2.
3.
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