Question

QUESTION 1 1 points Let L represent the number of workers hired by a firm, and let Q represent that firm's quantity of output. Assume two points on the firm's production function are (1.8,Q-97) and (L·9,Qo1433. Then the marginal product of h worker is a 46 units of output. b. 143 units of output c1 unit of output. d. 59 units of output. 1 points QUESTION 2 Table t Bob's Bulldozers Cost Table Quantity able Margina erage age Average otal otal Cost ost 210 Refer to Table 1. What is the value of IP $260 $210 d.$100 QUESTION3 1 points Save Aranm Table 1 Bob's Bullderers Cost Table otal 150 10 180 Refer to Table 1. What is the value of MP $120 $490 b. 540

Answer 1

As HOMEWORKLIB’s policy and guidelines, the first-four MCQs are answered below:

1.

Answer: a

This is difference of Q of two successive workers.

Marginal product of the worker 9 = Q9 – Q8

                                                       = 143 – 97

                                                       = 46

2.

Answer: b

I is the variable cost of 2 quantities.

Fixed cost should be searched first; it is $50 as reflected in 0 quantity.

Now G has to be found; G = Total cost of 150 + Marginal cost of 210 = 150 + 210 = 360

I = G – Fixed cost = 360 – 50 = $310

3.

Answer: c

Variable cost, O = Average variable cost × 3 = 180 × 3 = 540

M = Variable cost + Fixed cost = 540 + 50 = $590

4.

Answer: a

This is economies of scale; it indicates the increase in savings because of increasing production volume. Here, the average total cost (ATC) is the cost per unit which is reduced because of increasing output; it means there is economies of scale.

5.

Answer: a

Firms don’t face any barrier to entry or exit. This market system has free entry and exit in the long-run.

6.

Answer: d

Production should be done for the maximizing profit. In order to search for that stage, marginal cost must equal to marginal revenue; it is possible for 15 units, where (MC = MR = 11).