Question

QUESTION 22

1. A firm can produce 450 gallons of milk per day with 4 workers and 500 gallons per day with 5 workers. The marginal product of the fifth worker expressed in gallons per worker per day, is:

   		35.
   		50.
   		70.
   		350.

2.5 points   

QUESTION 23

1. Exhibit 7-1 Production of pizza data
   

   Workers	Pizzas
   0	0
   1	4
   2	10
   3	15
   4	18
   5	19

   
   
   Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the second employee equals:

   		4.
   		10.
   		14.
   		6.
   		15.

2.5 points   

QUESTION 24

1. Exhibit 7-1 Production of pizza data
   

   Workers	Pizzas
   0	0
   1	4
   2	10
   3	15
   4	18
   5	19

   
   
   Exhibit 7-1 shows the change in the production of pizzas as more workers are hired. The marginal product of the fifth employee equals:

   		4.
   		18.
   		19.
   		3.
   		1.

2.5 points   

QUESTION 25

1. Exhibit 7-8 Costs schedules for producing pizza
   

   Pizzas	Fixed Cost	Variable Cost	Total Cost	Marginal Cost
   0	$	$	$	$
   1		5
   2		13
   3				10
   4	100		140
   5				20
   6		85
   7			215

   
   
   By filling in the blanks in Exhibit 7-8, the marginal cost of the sixth pizza is shown to be equal to:

   		$10.
   		$15.
   		$20.
   		$25.
   		$85.

2.5 points   

QUESTION 26

1. Exhibit 7-12 Cost schedule for producing pizza
   

   Pizzas	Fixed Cost	Variable Cost	Total Cost
   0	$	$	$
   1			48
   2		17
   3		27
   4			78
   5	40
   6		64
   7		80

   
   
   By filling in the blanks in Exhibit 7-12, the AFC of 4 pizzas is shown to be equal to:

   		$10.
   		$9.50.
   		$19.50.
   		$40.
   		$78.

2.5 points   

QUESTION 27

1. Exhibit 7-12 Cost schedule for producing pizza
   

   Pizzas	Fixed Cost	Variable Cost	Total Cost
   0	$	$	$
   1			48
   2		17
   3		27
   4			78
   5	40
   6		64
   7		80

   
   
   By filling in the blanks in Exhibit 7-12, the AVC of 4 pizzas is shown to be equal to:

   		$10.
   		$9.50.
   		$19.50.
   		$40.
   		$78.

2.5 points   

QUESTION 28

1. Exhibit 7-12 Cost schedule for producing pizza
   

   Pizzas	Fixed Cost	Variable Cost	Total Cost
   0	$	$	$
   1			48
   2		17
   3		27
   4			78
   5	40
   6		64
   7		80

   
   
   By filling in the blanks in Exhibit 7-12, the ATC of 4 pizzas is shown to be equal to:

   		$10.
   		$9.50.
   		$19.50.
   		$40.
   		$78.

Answer 1

Ans.22- 50

Marginal product of fifth worker= 500-450= 50

Ans.23- 6 (10-4 = 6)

Ans.24- 1 (19-18=1)

Ans.25- 25

Ans.26- 10

AFC = 40/4 = 10.