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D. in the long run, all inputs are fixed.
223.
Which of the following statements is false?
224.
The long run is a period of time, or a time frame, in which
225. Which is most likely to be a long-run adjustment for a firm that manufactures cars on
an assembly-line basis?
226.
Marginal product of labor refers to the
227. According to the law of diminishing marginal returns,
9-123
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written consent of McGraw-Hill Education.
production costs.
Test Bank: II
Topic: Short-Run Production Relationships
228. Which of the following statements is true?
229. Diminishing marginal returns occurs as a firm adds more variable inputs to at least
one fixed input because
230.
The law of diminishing returns in a manufacturing plant of a fixed capacity implies that,
eventually, employing one
9-124
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written consent of McGraw-Hill Education.
A. more worker will increase the average amount of output per worker.
B. more worker will decrease the average amount of output per worker.
C.
fewer worker will decrease the average amount of output per worker.
D.
fewer worker will not affect the average amount of output per worker.
231. The law of diminishing returns only applies in cases where
232.
Which statement best illustrates the law of diminishing returns from studying?
9-125
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written consent of McGraw-Hill Education.
Test Bank: II
Topic: Short-Run Production Relationships
233. The total product curve graphically shows how much
234. When a bakery manager reports that at her bakery, productivity of her 15 workers last
month was 1,800 loaves per worker, she is referring to the
235. When the total product curve is falling, the
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written consent of McGraw-Hill Education.
A c c e s s i b i l i t y : Keyboard Navigation
Blooms: Understand
Difficu lty: 02 Medium
Learning Objective: 09–02 Relate the law of diminishing returns to a firms short-run
production costs.
Test Bank: II
Topic: Short-Run Production Relationships
236.
Over the range of positive, but diminishing, marginal returns for an input, the total product
curve
237. At the Amarillo Piano Company, the average product of labor stays constant at 5,
regardless of how much labor is employed. This implies that
238.
At what point does marginal product equal average product?
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written consent of McGraw-Hill Education.
A. where average product is equal to its minimum value
B.
where average product is equal to its maximum value
C. where marginal product is equal to its minimum value
D.
where marginal product is equal to its maximum value
239. At the point where diminishing marginal returns of an input sets in, the
240. The question is based on the following table, which provides information on the
production of a product that requires one variable input.
Input
Total Product
0
0
1
5
2
20
3
32
4
42
5
50
6
55
7
58
8
58
9
56
With the addition of the second unit of input, the marginal product is
241.
The question is based on the following table, which provides information on the
production of a product that requires one variable input.
Input
Total Product
0
0
1
5
2
20
3
32
4
42
5
50
6
55
7
58
8
58
9
56
Marginal product is largest for the
9-129
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written consent of McGraw-Hill Education.
AACSB: Knowledge Application
Blooms: Understand
Difficu lty: 02 Medium
Learning Objective: 09–02 Relate the law of diminishing returns to a firms short-run
production costs.
Test Bank: II
Topic: Short-Run Production Relationships
242.
The question is based on the following table, which provides information on the
production of a product that requires one variable input.
Input
Total Product
0
0
1
5
2
20
3
32
4
42
5
50
6
55
7
58
8
58
9
56
Diminishing marginal returns sets in with the addition of the
243.
This question is based on the following table, which provides information on the
production of a product that requires one variable input.
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Input
Total Product
0
0
1
5
2
20
3
32
4
42
5
50
6
55
7
58
8
58
9
56
There are negative marginal returns when the
244.
The question is based on the following table, which provides information on the
production of a product that requires one variable input.
Input
Total Product
0
0
1
5
2
20
3
32
4
42
5
50
6
55
7
58
8
58
9
56
Marginal product is zero when the total product is
245.
employed does diminishing marginal returns set in?
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written consent of McGraw-Hill Education.
D.
D
Refer to the provided graph showing the marginal product (MPL) and the average product of
labor (APL). At which quantity of labor
246.
Refer to the provided graph showing the marginal product (MPL) and the average product of
labor (APL). At which quantity of labor employed is marginal product equal to average product?
9-133
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written consent of McGraw-Hill Education.
Topic: Short-Run Production Relationships
247.
Refer to the provided graph showing the marginal product (MPL) and the average product
of labor (APL). At which quantity of labor employed is total product maximized?
248.
Refer to the provided graph, which shows the total product (TP) curve. At which point
does diminishing marginal returns set in?
249.
Refer to the provided graph, which shows the total product (TP) curve. At which point is
marginal product smallest?
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250.
Refer to the provided graph, which shows the total product (TP) curve. At which point is the
marginal product zero?
251.
Assume that the only variable resource used to produce output is labor.
Amount of
Labor
Total Product
1
6
2
16
3
24
4
30
5
34
6
36
Refer to the provided table. Diminishing marginal returns set in with the addition of the
252.
Assume that the only variable resource used to produce output is labor.
Amount of
Labor
Total Product
1
6
2
16
3
24
4
30
5
34
6
36
Refer to the provided table. When the firm hires four units of labor, the average product of
labor is
253.
Assume that the only variable resource used to produce output is labor.
Amount of
Labor
Total Product
1
6
2
16
3
24
4
30
5
34
6
36
Refer to the provided table. With diminishing marginal returns, if the firm hires seven units of
labor, which of the following numbers would most probably be the total product?
254. Variable costs are
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written consent of McGraw-Hill Education.
D. changes in total cost due to the production of an additional unit of output.
255. Fixed costs are those costs that are
256.
Total fixed costs of production in the short run
257.
Ouput
Total Cost
0
$10
1
20
2
28
3
38
4
53
5
73
6
98
Refer to the provided table. The total fixed cost of production is
258.
Ouput
Total Cost
0
$10
1
20
2
28
3
38
4
53
5
73
6
98
Refer to the provided table. The total variable cost of producing 5 units of output is