|B) |will become flatter as output increases, if there are diminishing returns to the variable input. |

Use the following to answer questions 2-3:

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|2. |(Table: Total Product and Marginal Product) The marginal product of the second worker is: |

|C) |20. |

|3. |(Table: Total Product and Marginal Product) The average product of the fourth worker is ________ units. |

|B) |22.5 |

Use the following to answer question 4:

Figure: Total Product

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|4. |(Figure: Total Product) As units of labor are hired between quantities L1 and L2, ________ is ________ and ________ is ________.|

|A) |total product; rising; marginal product; positive |

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|1. |(Table: Output and Costs) Using the information in the table, when quantity equals three, average total cost equals: |

|D) |17. |

|2. |Cindy operates Birds-R-Us, a small store manufacturing and selling 100 bird feeders per month. Cindy's monthly total fixed costs|

| |are $500, and her monthly total variable costs are $2,500. If for some reason Cindy's fixed cost fell to $400, then her: |

|B) |average total costs would decrease. |

|3. |Rebecca knows that Becca Furniture's marginal cost curve is above the