Question

Question 1

Lauren has 11 people working in her tangerine grove. The total product of eleven workers is 113 bushels of tangerines and the total product of 12 workers would be 115 bushels. If she hires the twelfth worker, the marginal product of that worker will be:

	115 bushels
	113 bushels
	2 bushels
	Insufficient information to determine

Question 2

Lauren has 11 people working in her tangerine grove. The total product of eleven workers is 113 bushels of tangerines and the total product of 12 workers would be 115 bushels. If tangerines sell for $100 per bushel, how much does total revenue increase when the 12th worker is hired?

	$20
	$100
	$200
	2 bushels

Question 3

Lauren has 11 people working in her tangerine grove. The total product of eleven workers is 113 bushels of tangerines and the total product of 12 workers would be 115 bushels. If bushels sell for $100 and workers cost $100 to hire, Lauren should:

	Be unable to decide what to do
	Hire 12 workers
	Hire 11 workers
	Shut down

Question 4

Diminishing returns to an input occur:

	when all inputs are variable.
	when some inputs are fixed and some are variable.
	when all inputs are fixed.
	when all costs are variable.

Question 5

You own a deli. Which of the following is most likely a fixed input at your deli?

	Tomato sauce
	Pickles
	The dining room
	Electricity

Question 6

The curve that shows the additional cost of each additional unit of output is called the _____ curve.

	average total cost
	marginal cost
	fixed cost
	average variable cost

Question 7

A business produces 10 pairs of eyeglasses. It incurs $35 in average total cost and $5 in average fixed cost. The average variable cost of producing 10 pairs of eyeglasses is:

	$35
	$300
	$30
	$50

Answer 1

Q1. Answer is 2 Bushels
Explanation:
Marginal product of 12th worker: 115-113 = 2 bushels
Q2. Answer is $ 200
Explanation:
Increase in production: 2 bushels
Increase in Total revenue: 2 *100 = $ 200
Q3. Answer is Hire 12 workers
Explanation:
Marginal revenue earned: 2*100 = 200
Marginal cost= 1*100 = 100
Q4. Answer is When some inputs are fixed and some are variable
Q5. Answer is The dining room
Q6. Answer is Marginal cost
Q7.. Answer is $ 30 per unit
Explanation: AVC = ATC-AFC =35- 5 = $ 30 per unit