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Solution Library
Marginal Product Calculation
Question
1. Suppose the marginal product of the 23rd worker is eight boxes of output. Average product when 23 workers are employed is five boxes per worker. We can conclude that:
A) average product is neither rising nor falling.
B) marginal product is neither rising nor falling.
C) marginal product is falling.
D) average product is rising.
2. Use the following to answer the question:
Workers Output MP AP
1 5 5 5
2 12 7 6
3 21 7
4 31 10 7.75
5 40 9 8
6 48 8
7 6 7.71
8 58 3 7.13
9 60 0 6.33
10 60 -3 5.4
Referring to the table and figure above, adding a fifth worker leads to:
A) diminishing marginal returns.
B) constant marginal returns.
C) negative marginal returns.
D) increasing marginal returns.
Summary
These multiple choice questions belong to Economics. The 1st question is about calculation of marginal product and the 2nd question is about calculation of marginal returns.
Total Word Count NA
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