Question

Table 13-1 Number of Workers Total Output Marginal Product 140 6. Refer to Table 13-1. What is total output when 2 workers are hired? a. 15 b. 45 c. 75 d. 120 et de 7. Refer to Figure 13-2. If the figure represented production at a cookie factory, the factory would be experiencing a. diminishing marginal product of workers b. diminishing marginal cost of cookie production c. decreasing cost of cookie production d. decreasing output of cookies. Wose Jan started up a small lemonade stand business last month. Variable costs for Jan's lemonade and now include the cost of lemons and sugar b.paper cups c. the wages paid to her hourly workers. d. All of the above are correct. that for a particular firm the only variable input into the production process is labor and that output equals zero when szero when no workers are hired. In addition, suppose that marginal cost of the third worker 540, and the average total cost when three workers are hired is $50. What is the total cost of production when three workers are hired?

Answer 1

Answer 6. 75

Reason

Total output with one worker= 0+30= 30

Total output with two worker= 30+45=75

Answer 7. A. Diminishing marginal product of labor

Reason

Marginal product is the slope of production function. When number of workers increases by 1 unit, the marginal product rises by a small amount.

Answer 8. All of the above.

Reason

Wages paid, paper cups, sugar lemonade are all the factors that vary with the amount of lemonade produced. So they are variable costs.

Answer 9. d. $150

Reason

Total cost when 3 workers are hired= ATC*3 = $50*3= $150