Econ: Costs and Perfectly Competitive Firm

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Department of Economics
ECON 101 Quiz 3
09 August, 2011
Name:…………………………………………………………………………………. No:……………………………………………………………………………………… 1) In the short run,
A) the size of the plant is fixed. B) all inputs are variable. C) all inputs are fixed. D) some firms experience increasing returns to scale. Answer: A
2) Points below a firm's total product curve are
A) both attainable and technologically efficient. B) neither attainable nor technologically efficient. C) attainable but not technologically efficient. D) technologically efficient but not attainable. Answer: C

Table 1
Labor | Total product (units)| Marginal product| Average product| 0| 0| | |
1| | 3| |
2| | | 4.5|
3| 14| | |
4| | 3| |
5| 19| | |
6| | 1| |

3) The above (incomplete) table provides information about the relationships between labor and various product measures. The total product that can be produced with 6 units of labor is A) 20. B) More information is needed to answer the question. C) 19. D) None of the above answers is correct. Answer: A

4) What is the amount of labor that maximizes the marginal product of labor? A) 2 units of labor. B) 3 units of labor. C) 4 units of labor. D) 5 units of labor. Answer: A

5) What is the average product of the fourth unit of labor?
A) exceeds the marginal product of the fourth unit of labor. B) is less than the marginal product of the fourth unit of labor. C) is equal to the marginal product of the fourth unit of labor. D) is equal to 4.0.

Answer: A
6) In the figure below, the marginal product of the second worker is A) 10 units. B) 5 units. C) 2 units. D) 1 units. Answer: B
7) In the below figure, the average product of labor at point c is A) 10....
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