Question

Plant 1 has a total product of 100 produced by 10 workers. Plant 2 has a total product of 100 produced by 8 workers. If we know that an 11th worker in plant 1 would add 4 units of output and a 9th worker in plant 2 would add 3 units it is then clear that added output should be produced by

Group of answer choices

plant 1

plant 2

either plant since both have the same average cost.

neither plant until more information is given.

In a typical short-run production function with labor on the horizontal axis and total output on the vertical axis, technological change can be shown by

Group of answer choices

a movement upward along the production curve.

A shift of the production function downward.

A shift of the production function upward.

None of the above because technology must be assumed constant in this model and cannot be shown on the graph.

If your object was to produce as much output as possible with a given short-run production function you would produce where the

Group of answer choices

average product is the greatest.

marginal product is the greatest.

marginal product is zero.

average product is zero.

marginal product equals the average product.

Which statement is true?

Group of answer choices

The marginal rate of technical substitution of labor for capital (MRTS) at a given point on an isoquant is the slope of the isoquant at that point.

The MRTS is constant along any single isoquant for perfect substitutes in production.

The MRTS is equal to the ratio of the marginal product of labor divided by the marginal product of capital at a given point on an isoquant.

All of the above statements are true.

None of the above statements are true.

Answer 1

(1)

If we know that an 11th worker in plant 1 would add 4 units of output and a 9th worker in plant 2 would add 3 units .

As we can see that, additional worker in plant 1 would add more output than additional worker in plant 2.

It means added output should be produced by plant 1.

Answer; Option ((A)

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(2) In a typical short-run production function with labor on the horizontal axis and total output on the vertical axis, technological change can be shown by a shift of the production function upward. It shows increase in output produced at each level of labor.

Answer: Option (C)

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(3) Output is maximum when marginal product of labor is zero.

If your object was to produce as much output as possible with a given short-run production function you would produce where the marginal product is zero.

Answer: Option (C)

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(4) Following statements are true:

The marginal rate of technical substitution of labor for capital (MRTS) at a given point on an isoquant is the slope of the isoquant at that point.

The MRTS is constant along any single isoquant for perfect substitutes in production.

The MRTS is equal to the ratio of the marginal product of labor divided by the marginal product of capital at a given point on an isoquant.

Answer: Option (D)