Question

13. In a company in the short run the production of a product requires one variable...

13. In a company in the short run the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 5 are, respectively, 0, 10, 18, 24, 28, and 30. Each unit of the product can be sold for \$3. The marginal product of the second unit of the resource is:
A. 4
B. 6
C. 8
D. 10

14. In a company in the short run the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 5 are, respectively, 0, 10, 18, 24, 28, and 30. Each unit of the product can be sold for \$3. The marginal revenue product of the third unit of resource is:
A. \$4
B. \$8
C. \$18
D. \$72

15. In a company in the short run the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 5 are, respectively, 0, 10, 18, 24, 28, and 30. Each unit of the product can be sold for \$3. The quantity of the resource needed to produce 28 units of the output is:
A. 2
B. 3
C. 4
D. 5

16. In a company in the short run the production of a product requires one variable input along with a fixed input. The total product of the units of the variable input from 0 to 5 are, respectively, 0, 10, 18, 24, 28, and 30. Each unit of the product can be sold for \$3. How many units of the resource would the profit-maximizing firm use if the price of the resource was \$18.00?
A. 1
B. 2
C. 3
D. 4

13. Ans: c ) 8

Explanation:

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

 Variable Inputs Total Product Marginal Product 0 0 0 1 10 10 2 18 8 3 24 6 4 28 4 5 30 2

14. Ans: c ) \$18

Explanation:

Marginal Revenue Product = Change in Total revenue product / Change in Variable inputs

 Variable Inputs Total Product Total Revenue Product Marginal Revenue Product 0 0 0 0 1 10 30 30 2 18 54 24 3 24 72 18 4 28 84 12 5 30 90 6

15. Ans: c ) 4

16. Ans: c ) 3

Explanation:

Profit maximization condition is where MC = MR

 Variable Inputs Total Product Total Revenue Product Total Cost Marginal Revenue Product Marginal Cost 0 0 0 0 0 0 1 10 30 18 30 18 2 18 54 36 24 18 3 24 72 54 18 18 4 28 84 72 12 18 5 30 90 90 6 18

Earn Coins

Coins can be redeemed for fabulous gifts.