A typical professional National Football League team has three quarterbacks on its roster. What is one reason why they might not have a fourth quarterback? A) The fourth quarterback’s marginal product is approximately zero. B) The fourth quarterback’s marginal product is approximately ten. C) The fourth quarterback’s marginal product is less than the first quarterback’s […]
Describe the relationship between marginal productivity and average productivity. Use calculus or a graph to support your answer. What will be an ideal response? ANSWER AP = Q(L)/L. dAP/dL = ([L ∗ MP] – Q) /L2 = (MP – AP)/L. Thus, if MP = AP, AP is constant. If MP > AP, AP will […]
For a linear production function, q = f(L,K) = 4L + 2K, what is the short-run production function given that capital is fixed at = 50? A) q = 4L + 100 B) q = 4L + 50 C) q = 4L D) q = 104 ANSWER A
Production functions only apply to advanced economies. Indicate whether the statement is true or false ANSWER False. Production functions describe the relationship between inputs and outputs, and apply to all kinds of economies.
Which of the following is least likely to be considered a capital input? A) a sewing machine B) a tractor C) a telephone D) a ten dollar bill ANSWER D
If the average productivity of labor equals the marginal productivity of labor, then A) the average productivity of labor is at a maximum. B) the marginal productivity of labor is at a maximum. C) Both A and B above. D) Neither A nor B above. ANSWER A
Which of the following inputs is easier to increase in the short run? A) number of airplanes B) size of the airport terminal C) ticket-counter sales people D) number of luggage carousels ANSWER C
The length of the short run is the same for all firms. Indicate whether the statement is true or false ANSWER False. Firms differ in their ability to change the amount of capital they employ. Therefore, the short-run period is likely different for firms in different industries.
The slope of the total product curve always equals A) the ratio of the marginal product and the average product. B) the change in input divided by the change in output. C) the average product of the input. D) the marginal product of the input. ANSWER D
Total Product is A) the change in total product resulting from an extra unit of labor, holding other factors constant. B) the ratio of output to the number of workers used to produce that output. C) the amount of output that can be produced by a given amount of labor. D) equal to the marginal […]
