Question

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

Answer #1

**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 |

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55, 58, 58, and 56. Marginal product is largest for the:
A. Second unit of variable input
B. Third unit of variable input
C. Seventh unit of variable input
D. Ninth unit of variable input
9. Say the production of a product...

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5
6
7
8 9
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120 140 155
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Answer:
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Preble Company manufactures one product. Its variable manufacturing
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Direct
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Direct
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45.00
Variable
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21.00
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