Principles of economics ii UE Past Papers Questions.

In the short run, the firm`s production curves exhibit all of the following except

1. Average product of the labour is at its maximum when marginal product of labour is equal to
2. Total product of labour is at its maximum when =0
3. begins to decrease when begins to decrease
4. When <, is decreasing
5. reaches a maximum sooner than does either or

Answer / Solution

UNSOLVED

If we know that capital is fixed and a business firm can produce 36 units of output per day with 3 workers and 44 units of output per day with 4 workers , then we know all of the following except:

1. The marginal product is below the average product
2. The firm has passed the point of diminishing marginal productivity
3. The average product of three workers is 12
4. The marginal product of the third worker must be greater than 8
5. We know all of the above

Answer / Solution

UNSOLVED

All of the following describe marginal cost except marginal cost is (does) not

1. The change in total cost associated with producing an additional unit of output
2. Given by (change in TC)/(change in  Q)
3. Given by (change in TVC)/(change in Q)
4. Positively related to the short run marginal product of labour
5. Reach a minimum at the same time that the reaches a maximum

Answer / Solution

UNSOLVED

All of the following describe marginal cost except marginal cost is (does) not

1. The change in total cost associated with producing an additional unit of output
2. Given by (change in TC)/(change in  Q)
3. Given by (change in TVC)/(change in Q)
4. Positively related to the short run marginal product of labour
5. Reach a minimum at the same time that the reaches a maximum

Answer / Solution

UNSOLVED