Essay about test 4

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Question 1 0 out of 4 points A short-run production function assumes that Selected Answer: the level of output is fixed. Correct Answer: at least one input is a fixed input. Question 2 4 out of 4 points Refer to the following table: Amount of total output produced from various combinations of labor and capital. Units of Capital 1 2 3 Units of Labor 1 2 3 4 5 6 80 180 270 340 390 410 100 220 330 420 490 530 120 260 390 500 590 650 If capital is fixed at two units, what is the marginal product of the fourth unit of labor? Selected Answer: none of the above Correct Answer: none of the above Question 3 4 out of 4 points Refer to the following table: Amount of total output…show more content…
Correct Answer: could be rising or falling. Question 17 0 out of 4 points A sofa manufacturer currently is using 50 workers and 30 machines to produce 5,000 sofas a day. The wage rate is $200 and the rental rate for a machine is $1,000. At these input levels, another worker adds 200 sofas, while another machine adds 500 sofas. Assuming that the marginal product of labor is constant between 45 and 50 workers and the marginal product of capital is constant between 30 and 31 machines, if the firm uses 45 workers and 31 machines instead, then its Selected Answer: cost will be unchanged, and its output will increase by 500 units. Correct Answer: cost will be unchanged, and its output will decrease by 500 units. Question 18 0 out of 4 points A dry cleaner currently has 10 workers and 4 machines. The workers' wage rate is $300 per worker and the rental rate for a machine is $500. The last worker added 600 units to total output and the last machine also added 600 units to total output. Assuming that the marginal product of labor is constant between 10 and 11 workers and the marginal product of capital is constant between 3 and 4 machines, if the dry cleaner uses 11 workers and 3 machines instead, then Selected Answer: cost will be unchanged and output will increase by 300 units. Correct Answer: output will be unchanged and cost will decrease by $200. Question 19 0 out of 4 points A firm is using 500 units of labor

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