Suppose that the firm's only variable input is labor. When 50 workers

1.Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 4 workers, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2, what is the average total cost of production when the firm hires 5 workers?_________. 选项：A、$22.80 B、$2.00 C、$20.00 D、$20.80

2.In a certain textile firm, labor is the only short term variable input. The manager notices that themarginal product of labor is the same for each unit of labor, which implies that: 选项： A:the average product of labor is always greater that the marginal product of labor. B:the average product of labor is always equal to the marginal product of labor. C:the average product of labor is always less than the marginal product of labor. D:as more labor is used, the average product of labor falls. E:there is no unambiguous relationship between labor's marginal and average products.

3.Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 2 workers, the total cost of production is $100. When the firm hires 3 workers, the total cost of production is $120. In addition, assume that the variable cost per unit of labor is the same regardless of the number of units of labor that are hired. What is the firm's fixed cost?_________. 选项：A、$100 B、$40 C、$60 D、$80

4.Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that the average total cost when 5 units of output are produced is $80, and the marginal cost of the sixth unit of output is $160. What is the average total cost when six units are produced? 选项： A、$80.00 B、 $83.33 C、 $88.33 D、 $93.33

5.The marginal product of labor 选项： A: equals the total product divided by quantity of labor. B: equals the increase in cost when another worker is hired. C: always decreases as more workers are hired. D: equals the change in total product divided by the increase in the quantity of labor. E: equals total product divided by the wage rate.

6.When a competitive firm hires labor up to the point at which the value of the marginal product of labor equals the wage, it also produces up to the point at which the price of output equals average variable cost选项： A:正确; B:错误

7.In the short-run, a firm's supply curve is equal to the 选项： A:Marginal cost curve above its average variable cost curve. B:Marginal cost curve above its average total cost curve. C:Average variable cost curve above its marginal cost curve. D:Average total cost curve above its marginal cost curve. E:Average variable cost curve below its average total cost curve.

8.(单选题)In the short-run, a firm's supply curve is equal to the 选项： A:Marginal cost curve above its average variable cost curve. B:Marginal cost curve above its average total cost curve. C:Average variable cost curve above its marginal cost curve. D:Average total cost curve above its marginal cost curve. E:Average variable cost curve below its average total cost curve.

9.Consider the following statements when answering this questionI.If a firm employs only one variable factor of production,labor,and the marginal product of labor is constant,then the marginal costs of production are constant too.II.If a firm employs only one variable factor of production,labor,and the marginal product of labor is constant,then short-run average total costs cannot rise as output rises

10.Consider the following statements when answering this question:I. If the marginal product of labor falls whenever more labor is used, and labor is the only factor of production used by the firm, than at every output level the firm's short-run average variable cost exceeds marginal cost.II. If labor obeys the law of diminishing returns, and is the only factor of production used by the firm, then at every output level short-run average variable costs exceed marginal costs. 选项： A:I is true, and II is false. B:I is false, and II is true. C:I and II are both true. D:I and II are both false.

11.If a firm uses labor to produce output, the firm's production function depicts the relationship between 选项： A、the number of workers and the quantity of output. B、 marginal product and marginal cost. C、 the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor. D、 fixed inputs and variable inputs in the short run.

12.If a firm uses labor to produce output, the firm’s production function depicts the relationship between 选项： A:the number of workers and the quantity of output.; B:marginal product and marginal cost.; C:the maximum quantity that the firm can produce as it adds more capital to a fixed quantity of labor.; D:fixed inputs and variable inputs in the short run.

13.8、An analyst does research about marginal cost and average cost.In the short run,when a firm's output increases beyond the point at which marginal cost equalsaverage variable cost, average fixed cost:【单选题】A、and average total cost both increase.B、decreases and average variable cost increases.C、decreases and average total cost increases.

14.(p. 408) According to the economic theory, profit is maximized when the firm operates at that point at which: 选项： A:Average revenue equals average cost B:Total revenue equals total cost C:Marginal revenue equals marginal cost D:Average total cost equals marginal cost E:Average fixed cost equals average variable cost

15.A firm wants to minimize the total cost of producing 100 tons of dynamite. The firm uses two factors of production, chemicals and labor. The combination of chemicals and labor that minimizes production costs will be found where: 选项： A:the marginal products of chemicals and labor are equal. B:the ratio of the amount of chemicals used to the amount of labor used equals the ratio of the marginal product of chemicals to the marginal product of labor. C:the ratio of the amount of chemicals used to the amount of labor used equals the ratio of the price of chemicals to the wage rate. D:the production of an additional unit of dynamite costs the same regardless of whether chemicals or labor are used. E:none of the above

16.At some pint adding more of a variable input, such as labor, to the same amount of a fixed input, such as capital, will cause the marginal product of the variable input to decline--MPL could become negative if workers got in each other's way but no firm would hire to this point 选项： A、错 B、对

17.An analyst does research about total, marginal and average product curve of labor. As more labor is hired, which of the following curves initially increases and then decreases A. The average product of labor curve, but not the total and marginal product of labor curve.B. The marginal product of labor curve, but not the total and average product of labor curve.C. Both the marginal product of labor and the average product of labor curve, but not the total product of labor curve.

18.Diminishing marginal returns occur when ________. 选项： A: the average product of the variable input eventually diminishes B: the marginal product of an additional worker is less than the marginal product of the previous worker hired C: the firm hires cheap, less-skilled workers in place of expensive, high-skilled workers D: total product diminishes

19. In the above figure, the intersection of curves A and B is the point at which 选项： A、 average total cost is minimized. B、 average variable cost is minimized. C、 average fixed cost is minimized. D、 total product is maximized.

20.For a profit-maximizing, competitive firm, the value of the marginal product of labor 选项： A、increases when the price of output decreases. B、is the firm’s demand for labor. C、equals the marginal product of labor divided by the wage rate D、All of the above are correct.

21.The government imposes a $1,000 per year license fee on all pizza restaurants. As a result, which cost curves shift? 选项： A: average total cost and marginal cost B: average total cost and average fixed cost C: average variable cost and marginal cost D: average variable cost and average fixed cost