Question

SECTION# NAME PRINT LAST NAME, FIRST NAME Suppose 9 workers can repair 36 television sets per day. If a tenth worker is hired and the each worker repairs, on average, 4 T.V. sets per day when nine workers are hired average product must be rising because the marginal product of the tenth worker 6. total number of repaired T.V. sets increases to 39, then: a. the marginal product of the tenth worker is 3.9 T.V, sets b. is greater than average product when nine workers are hired. E12 C. All of the above are true d. 082 oe c2 1002 Hal's Holiday Hats produces Santa hats in a small factory on the edge of town. There is a fixed amount of capital used to produce the hats, yet plenty of labor is available for work. The following table is a hypothetical production schedule for Hal's shop. Use the information below to answer questions 7 through 10. Quantity of hats produced per day 0 Labor 0 20 1 50 75 3 100 5 100 ि 90 1 n 6 3ar o! 7 t wd hats per day. o The marginal product of the second worker is 30 7. 20 C. a. b. 25 d. 50 wolsd nldat ot eavty When 3 workers are hired, average product is 8 hats per day.dir 10 a. 50 C. b. 25 d. 75 If the marginal product of the fourth worker is 15 units of output, the quantity of hats produced per day when four workers are employed is equal to 9. a. 80 95 C. b. 90 d. 100 10. Diminishing marginal product (or "diminishing returns") sets in with the addition of the worker. first taubo n a gto 1urtoto ou a. 11 b. c. third second d. fourth tho 888

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Answer 1

6.

Number of worker	TP	AP	MP
9	36	4	---
10	39	3.9	3

AP_L= Q/L

MP_L= ∆Q/∆L

Answer: a. each worker repairs, on an average, 4 T.V. sets per day when nine workers are employed. (True).

Labour	TP	AP	MP
0	0	---	0
1	20	20	----
2	50	25	30
3	75	25	25
4	90	22.5	15
5	100	20	10
6	100	16.66	0
7	90	12.85	−10

7. Marginal product of the second worker is 30 hats per day.

Answer: c (MP_L=∆Q/∆L= 50-20=30=30/1)

8. When 3 workers are hired, average product is 25 hats per day.

Answer: b. AP_L= Q/L (75/3).

9. If the marginal product of the fourth worker is 15 units of output, the quantity of hats produced per day when four workers are employed is equal to 90 hats.

Answer: b. 90 (the total product when fourth worker is employed = total product at third labour + marginal product of the fourth labour.)

10. Diminishing marginal product (or “diminishing returns”) set in with the addition of the third worker.

Answer: c (diminishing returns occurs at a stage where the marginal product diminishes)