Fair Value

3868 Words16 Pages
Exhibit 1 1. (Exhibit 1: Total Product) Between points A and B the marginal product of labor is: A) increasing. B) zero. C) falling. D) infinite. Ans: C Exhibit 2: Total Product and Marginal Product | Labor per Day | Total Products (units per period) | 0 | 0.0 | 1 | 1.0 | 2 | 3.0 | 3 | 7.0 | 4 | 9.0 | 5 | 10.0 | 6 | 10.7 | 7 | 11.0 | 8 | 10.5 | 2. (Exhibit 2: Total Product and Marginal Product) The marginal product of the second worker is: A) 1.0. B) 1.5. C) 2.0. D) 3.0. Ans: C 3. Marginal product: A) can never increase. B) can only be falling. C) can be less than zero. D) never equals average product. Ans: C Exhibit 3 4. (Exhibit 3: Short-Run…show more content…
| (Exhibit 9: Total Cost for a Perfectly Competitive Firm) If the market price is \$4.50, the profit-maximizing quantity of output is _______ units. | A) | 5 | B) | 7 | C) | 8 | D) | 9 | Ans: | C | | | 17. | (Exhibit 9: Total Cost for a Perfectly Competitive Firm) If the market price is \$3.50, the profit-maximizing quantity of output is _______ units. | A) | 5 | B) | 7 | C) | 8 | D) | 9 | Ans: | B | | | 18. | (Exhibit 9: Total Cost for a Perfectly Competitive Firm) If the market price is \$5.50, the profit-maximizing quantity of output is _______ units. | A) | 5 | B) | 7 | C) | 8 | D) | 9 | Ans: | D | Exhibit 10 | | 19. | (Exhibit 10: Profit Maximizing) The exhibit shows cost curves for a firm operating in a perfectly competitive market. Curve M is the _______ curve. | A) | ATC | B) | MR | C) | MC | D) | AVC | Ans: | C | | | 20. | (Exhibit 10: Profit Maximizing) The exhibit shows cost curves for a firm operating in a perfectly competitive market. Curve N is the _______ curve. | A) | ATC | B) | MR | C) | MC | D) | AVC | Ans: | A | | | 21. | (Exhibit 10: Profit Maximizing) The exhibit shows cost curves for a firm operating in a perfectly competitive market. Curve O is the _______ curve. | A) | ATC | B) | MR | C) | MC | D) | AVC | Ans: | D | | | 22. | (Exhibit10: Profit Maximizing) The exhibit shows cost curves for a