Fair Value

Exhibit 1

1. (Exhibit 1: Total Product) Between points A and B the marginal product of labor is:
A) increasing.
B) zero.
C) falling.
D) infinite.

Ans: C

Exhibit 2: Total Product and Marginal Product |

Labor per Day | Total Products (units per period) | 0 | 0.0 | 1 | 1.0 | 2 | 3.0 | 3 | 7.0 | 4 | 9.0 | 5 | 10.0 | 6 | 10.7 | 7 | 11.0 | 8 | 10.5 |
2. (Exhibit 2: Total Product and Marginal Product) The marginal product of the second worker is:
A) 1.0.
B) 1.5.
C) 2.0.
D) 3.0.

Ans: C

3. Marginal product:
A) can never increase.
B) can only be falling.
C) can be less than zero.
D) never equals average product.

Ans: C

Exhibit 3

4. (Exhibit 3: Short-Run Costs) Curve A is the _______ cost curve.
A) average total
B) average variable
C) marginal
D) total

Ans: C

Exhibit 4

5. (Exhibit 4: A Firm 's Cost Curves) The curve labeled V represents the firm 's _______ curve.
A) total cost
B) average total cost
C) marginal cost
D) average variable cost

Exhibit 5

| | 6. | (Exhibit 5: The Market for Carrots) If demand is D1, the price of carrots will be _______ cents, the quantity demanded will be _______ , and the quantity supplied will be _______ . | A) | 20; 100; 90 | B) | 20; 100; 100 | C) | 30; 160;160 | D) | 30; 100; 160 | Ans: | B |

Exhibit 6

| | 7. | (Exhibit 6: Total Revenue and Cost) The most profitable level of output occurs at quantity: | A) | F. | B) | K. | C) | L. | D) | M. | Ans: | D |

Exhibit 7

| | 8. | (Exhibit 7: Total Revenue, Total Costs, and Economic Profit) Total revenue and total cost are equal at approximately _______ pounds and $_______ . | A) | 2,000; 1,400 | B) | 5,000; 1,600 | C) | 10,000; 2,800 | D) | 15,000,2,800 | Ans: | C |

| | 9. | (Exhibit 7: Total Revenue, Total Costs, and Economic Profit) Total revenue and total cost are equal at