21
7) Refer to Table 7.1. If the hourly wage rate is $10 and the hourly price of capital is $25, which production
technology should be selected?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
Use the information provided in Table 7.2 below to answer the question(s) that follow.
Table 7.2Inputs Required to Produce a Product Using Alternative Technologies
8) Refer to Table 7.2. Which technology is the most capital intensive?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
9) Refer to Table 7.2. If the hourly wage rate is $10 and the hourly price of capital is $50, which production
technology should be selected?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
22
10) Refer to Table 7.2. If the hourly price of labor is $10 and the hourly price of capital is $1, which
production technology should be selected?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
11) Refer to Table 7.2. Which technology is the most labor intensive?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
12) Refer to Table 7.2. Which technology is the least capital intensive?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
13) Refer to Table 7.2. If the hourly price of capital is $30 and the hourly wage rate is $5, which production
technology should be selected?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
23
14) Refer to Table 7.2. If the hourly price of capital is $10 and the hourly price of labor is $20, which
production technology should be selected?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
15) Refer to Table 7.2. Which technology is the least labor intensive?
A) A
B) B
C) C
D) D
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
24
Refer to the information provided in Figure 7.2 below to answer the question(s) that follow.
Figure 7.2
16) Refer to Figure 7.2. The marginal product of the second worker is ________ lawns mowed.
A) 3
B) 5
C) 8
D) 11
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
17) Refer to Figure 7.2. The average product with two workers is ________ lawns mowed.
A) 4
B) 5
C) 5.5
D) 11
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
18) Refer to Figure 7.2. The marginal product of the first worker is ________ lawns moved.
A) 3
B) 4
C) 5
D) 11
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
25
19) Refer to Figure 7.2. The average product of the first worker is ________ lawns moved.
A) 3
B) 4
C) 5
D) 11
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
Refer to Scenario 7.7 below to answer the question(s) that follow.
SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three,
and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively.
20) Refer to Scenario 7.7. The marginal product of the second worker is
A) 3.
B) 4.
C) 5.
D) 9.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
21) Refer to Scenario 7.7. The marginal product of the third worker is
A) 2.
B) 3.
C) 4.
D) 12.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
26
22) Refer to Scenario 7.7. The marginal product of the fourth worker is
A) 2.
B) 3.
C) 12.
D) 14.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
23) Refer to Scenario 7.7. Diminishing returns to labor set in with the ________ worker.
A) first
B) second
C) third
D) fourth
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
24) Refer to Scenario 7.7. The average product of labor with three workers is
A) 3.
B) 3.5.
C) 4.
D) 12.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
25) Refer to Scenario 7.7. The average product of labor with four workers is
A) 3.
B) 3.5.
C) 4.
D) 14.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
27
Refer to the information provided in Figure 7.3 below to answer the question(s) that follow.
Figure 7.3
26) Refer to Figure 7.3. The marginal product of the second worker is ________ yards raked.
A) 2
B) 13.5
C) 17
D) 27
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
27) Refer to Figure 7.3. The average product with two workers is ________ yards raked.
A) 4
B) 13.5
C) 14
D) 27
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
28) Refer to Figure 7.3. The marginal product of the first worker is ________ yards raked.
A) 10
B) 13.5
C) 17
D) 27
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
28
29) Refer to Figure 7.3. The average product of the first worker is ________ yards raked.
A) 4
B) 10
C) 14
D) 27
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
30) When Burger Barn hires one worker, 20 customers can be served in an hour. When Burger Barn hires
two workers, 50 customers can be served in an hour. The marginal product of the second worker is
________ customers served per hour.
A) 15
B) 30
C) 40
D) 67.5
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
31) The marginal products of the first, second, and third workers are 20, 12, and 8, respectively. If four
workers can produce 45 units of output, then the marginal product of the fourth worker is
A) 4.
B) 5.
C) 40.
D) 45.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–20
29
32) At the Pampered Pet Salon the marginal products of the first, second, and third workers are 20, 16,
and 10 dogs washed, respectively. The total product (number of dogs washed) of the first two workers is
A) 16.
B) 20.
C) 36.
D) 46.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
33) At the Pampered Pet Salon the marginal products of the first, second, and third workers are 20, 16,
and 10 dogs washed, respectively. The total product (number of dogs washed) of the three worker is
A) 15.33.
B) 30.
C) 46.
D) 138.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
34) At the Larson Bakery the marginal products of the first, second, and third sales clerks are 20, 17, and
11 customers served, respectively. The total product (number of customers served) of the first two sales
clerks is
A) 3.
B) 17.
C) 37.
D) 48.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
30
35) At the Larson Bakery the marginal products of the first, second, and third sales clerks are 20, 17, and
11 customers served, respectively. The total product (number of customers served) of the three sales
clerks is
A) 11.
B) 40.
C) 46.
D) 48.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow.
Figure 7.4
36) Refer to Figure 7.4. The marginal product of the second worker is
A) 10.
B) 16.
C) 20.
D) 32.
Topic: The Production Process
Skill: Analytical
AACSB: Analytical Thinking
Learning Outcome: Micro–17