Question

Please explain why its correct

17. Since the marginal product
quantity of output divided by the change in the quantity of labor, it stands to reason that:

a. a firm would never operate in the range where marginal product is negative.
b. a firm would never operate in the range where marginal product is decreasing.

c. marginal product will continually increase as the firm produces more.
d. there is no predictable relationship between marginal revenue and marginal cost.

Answer: _____

18. Adding more fixed inputs to the production process shifts the total product curve _______ and the marginal product curve _______.

measured on the horizontal axis
measured on the horizontal axis

of labor equals the change in the

a. upward; upward
      b. upward; downward
      c. downward; upward
      d. downward; downward

Answer: _____

19. The total product curve for blueberries slopes _______ reflecting that as more workers are employed more blueberries are produced, and becomes ______ because the marginal product of labor declines as more and more workers are employed.

      a. upward; flatter
      b. upward; steeper
      c. downward; flatter
      d. downward; steeper

Answer: _____

20. Which of the following
FALSE?

      a. The marginal cost
      cost curve.
      b. The marginal cost
      marginal returns.

statements about the marginal cost curve is

curve is equal to the slope of the total

curve slopes upward because of diminishing

c. Marginal cost is equal to the change in total cost generated by producing one more unit of output.
d. Marginal cost depends upon the level of fixed costs.

Answer: _____

Answer 1

Answer 1) Since the marginal product quantity of output divided by the change in the quantity of labor, it stands to reason that a firm would never operate in the range where marginal product is negative because by employing additional labor total product will decrease which no firms want because firms operate to generate profit.

Hence option A is the correct answer.

2) The total product curve for blueberries slopes upward reflecting that as more workers are employed more blueberries are produced, and becomes flatter because at initial stage capital availability is per worker very high as a result output increases as labor increases but after a point the marginal product of labor declines as more and more workers are employed which makes the curve flatter as less output will be produced by each additional unit.

Hence option A is the correct answer.

3) Marginal cost depends upon the level of fixed costs this statement is False because marginal cost depends on Variable costs. Option C is correct. Option A & B are incomplete.  

Hence option D is the correct answer.

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