Question

4. How many haircuts can be produced if a total of four labor hours are used? a) 14 b) 19 c) 19x4 d) 19+ 4 e) You can't tell from this graph. 5. During the fourth hour, how many haircuts are produced? a) 14 b) 19 c) 4 d) 5 c) You can't tell from this graph. mhe rodued? a) 19 b) 23 c) 4 d) 5 e) You can't tell from this graph. 7. Moving from three to five hours of labor input, this production process is characterized by a) diminishing marginal returns b) constant marginal returns c) increasing marginal returns d) economies of scale e) diminishing total product 8. Moving from zero to two hours of labor input, this production process is characterized by: a) diminishing marginal returns b) constant marginal returns c) increasing marginal returns d) economies of scale e) diminishing total product 9. If it costs $15 per hour to pay workers, what is the total labor cost involved in producing s haircuts? a) S2 b) $15 c) $30 d) $ 120 e) you can't tell from this graph

Answer 1

4.

As it can be seen in the graph that total product curve is given. Hence when total four labors are hired, then 19 haircuts can be produced.

Hence option b is the correct answer.

5.

As it can be seen in the diagram that during the fourth hour 5 hair-cuts are produced.

=hair-cut production by four labor- hair cut production by three labor

=19-14

=5 hair cuts.

Hence option d is the correct answer.

6.

As it can be seen in the diagram that during the fifth hour 4 hair-cuts are produced.

=hair-cut production by five labor- hair cut production by four labor

=23-19

=4 hair cuts.

Hence option c is the correct answer.

7.

MPL of 4^th labor=5

MPL of 5^th labor=4

When moving from 3 to 5 hours of hair-cuts, the marginal product of the labor decreases from 5 to 4. It means there is diminishing marginal returns.

Hence option a is the correct answer.

8.

MPL of first labor=2-0

=2

MPL of second labor=8-2

=6

When moving from 0 to 2 hours of hair-cuts, the marginal product of the labor increases from 2 to 6. It means there is an increasing marginal return.

Hence option c is the correct answer.