Question

.
(Figure 6.1) Which of the following statements is (are) TRUE?


I. At L = 5, MPL > APL.
II. At L = 2, MPL = APL.
III. For this production function, MPL is greater at L = 2 than at L = 8.
IV. For this production function, MPL is always greater than APL.

I and IV
I and II
II
III

11.
Brenda's Pastry employs two workers who produce 4 dozen pastries per hour. After Brenda hires a third worker, the number of pastries produced increases to 7 dozen per hour. Because the marginal product of the third worker is _____ than the average product of two workers the average product must _____.

greater; rise
less; fall
less; rise
greater; fall

12.
Below is the short-run production function for a given firm with five units of capital. Use the multi-point line drawing tool to plot the firm's short-run production function as a function of labor, including all points from L=0 to L=5. Label the curve SR_Production. Be sure to plot each point.

Capital, K Labor, L Output, Q
5 0 0
5 1 8
5 2 14
5 3 17
5 4 19
5 5 20

13. (Figure 6.3) Which of the following statements is (are) TRUE?


I. More output is produced at point A than at point B.
II. The ratio of the marginal product of labor to the marginal product of capital is higher at point A than at point B.
III. The MRTSLK is equal at points A and B.

III
II
I, II, and III
II and III