Question

Use Table 23-1 to answer Questions 39 through 43. Table 23-1 Fixed Input Variable Input Total Product 141111 O-Amino 39. For the firm described in Table 23-1, what is the marginal product of the eighth unit of variable input? a. 8 B. -2 c. 5 d. 8 e. 40 40. For the production function described by Table 23-1, what level of output marks the boundary between Stage II and Stage III? a 6.5 6. 7.5 c. 10 d. 40 . 48 41. According to Table 23-1, what is the marginal product of the fourth unit of variable input? a. 40 b. 10 c. 7 d. 7/4 e. 1/10 42. According to Table 23-1, what is the average product if two units of the variable input are hired? a. 3.67 b. 11 c. 12 d. 16 e. 22 ed States) Focus

Answer 1

Variable Input	Total Product	Marginal Product
0	0	--
1	10	10
2	22	12
3	33	11
4	40	7
5	45	5
6	48	3
7	48	0
8	46	-2

Marginal Product = Change in Total Product / Change in Variable input

For example at 2 units of variable input, marginal product will be

Marginal Product = 22 - 10 / 2 - 1

Marginal Product = 12

39) Marginal product of the eighth unit of variable input

Marginal Product = 46 - 48 / 8 - 7

Marginal Product = -2

Hence option B is correct

40) Stage 1 is when marginal product increases which is from 1 to 2 units

Stage 2 is when marginal product decreases which is from 3 to 7 units

Stage 3 is when marginal product is negative which is at 8 units

So the boundary between stage 2 and stage 3 will be between 7 and 8 units which will be 7.5.

Hence option B is correct

41) Marginal product of the fourth unit of variable input

Marginal Product = 40 - 33 / 4 - 3

Marginal Product = 7

Hence option C is correct

42) Average product if two units of the variable input are hired

Average Product = Total Product / Variable input

Average Product = 22 / 2

Average Product = 11

Hence option B is correct