Question

php/2z8250/imod, resouraefoonte C Q Search m oTOmaupierchoicu quesuons CTcomecrarawers worUrNpaine rpo o aa wa Submit your answers by 10:00am on Tuesday, November 5, 2019. Use the link that is posted on Moodle. 1. Which of the following statements is (are) correct? (x) Economists distinguish between short run and long run production by assuming that in the short run, at least one input is fixed and in the long run all inputs are variable. (y) In the long run, fixed inputs change to variable inputs so the size of a factory is not fixed in the long run. (z) One would expect to observe diminishing marginal product when the labor force must use a smaller amount of inputs to produce more of the product. A. (x), (y) and (z) B. (x) and (y) only C. (x) and (z) only D. (y) and (z) only E. Exhibit 1 (y) only Weekly production 2. Use Exhibit 1. Which of the following statements is (are) correct? (x) The marginal product of the first worker is 240 units of output and the marginal product of the fourth worker is 220 units per week. (y) Diminishing marginal product occurs with the addition of the fourth worker. Number Marginal Product Quantity of of Workers of Labor Output 240 1 (z) Two workers produce 560 units and the average product of five workers is 264 units because five workers produce 1,320 units (x), (y) and (z) B. 320 960 1180 4 A. 140 (x) and (y) only C. 5 (x) and (z) only D. 1320 6 (y) and (z) only E. (y) only Charlene auit in order to start 945 Charlene a chemist worked in a chemistry lab and earned $60.000 per vear 1/w.

Answer 1

1. Economists distinguish between short run and long run production by assuming that in the short run , at least one input is fixed and in the long run all inputs are variable.

In the long run , fixed inputs change to variable inputs so the size of factory is not fixed in the long run.

Hence, option(B) is correct.

2.

Number of workers	Quantity of output	Marginal product of labor
1	240	240
2	(240+320)= 560	320
3	960	(960-560)= 400
4	1180	(1180-960)= 220
5	(1180+140)= 1320	140
6	1320	0

Statement x is true because MP of first worker = 240 units and For fourth worker = 220 units.

Statement y is true because MP starts diminishing with the addition of fourth worker.

Statement z is true because two workers produce 560 units , average produce of five workers = 1320/5 = 264 units .

Hence, option (A) i.e x, y and z are correct.