Question

QUESTION 4

1. Fill in the blank.

   ENTER A WHOLE NUMBER ONLY, NO COMMAS, NO DECIMAL POINTS, NO UNITS.

   Consider a plowing service with capital fixed at 4 plows. The table shows how many driveways can be plowed as the number of workers increases:

   L          Driveways

   0          0

   1          200

   2          500

   3          700

   4          800

   5          700

   The marginal product of the 2nd worker is equal to __________ [a] (REMINDER: ENTER A WHOLE NUMBER)

10 points   

QUESTION 5

1. Consider a plowing service with capital fixed at 4 plows. The table shows how many driveways can be plowed as the number of workers increases:

   L          Driveways

   0          0

   1          200

   2          500

   3          700

   4          800

   5          700

   Diminishing returns to labor begin when the _____ worker is hired.

   	a.	first
   	b.	second
   	c.	third
   	d.	fourth
   	e.	fifth

10 points   

QUESTION 6

1. (Be sure to read all the options and choose the BEST answer.) If the marginal product of labor is _____, then the average product of labor will fall.

   	A.	increasing
   	B.	less than the average product of labor
   	C.	greater than the average product of labor
   	D.	decreasing

Answer 1

4) MP of second worker = 500-200 =300

5)

L	Driveways	MP
0	0
1	200	200
2	500	300
3	700	200
4	800	100
5	700	-100

Diminishing returns starts with 3rd worker

option(C)

6) When MP is below the AP, the AP will decrease

option(B)