AP MICRO UNIT 3

Front

What is the marginal product per week of the sixth worker at Locotek, which produces toy trains and pays each worker $350 per week?

Back

5 trains

Front

If the marginal product of an input is positive and increasing, total product is

Back

increasing at an increasing rate

Front

Which of the following is true of production in the long run?
At least one factor of production is fixed.
Only one factor of production is fixed.
Some factors of production are fixed while others are variable.
All factors of production are variable.
All factors of production, except technology, are fixed.

Back

All factors of production are variable.

Front

A short-run production function shows the relationship between a firm’s inputs and the output it produces when the firm

Back

has at least one fixed input

Front

When marginal product exceeds average product, which of the following must be true? Average product is increasing, Average product is decreasing, Marginal product is increasing, Total product is decreasing, Total product is at its maximum.

Back

Average product is increasing.

Front

If the firm produces Q₁ units of output with two inputs, the firm will be experiencing which of the following in the short run and in the long run? Short run- Diminishing marginal returns Long run- economies of scale

Back

Short run- Diminishing marginal returns; Long run- economies of scale

Front

With capital held constant, when Zane employs one additional worker, the marginal product of labor decreases by 5 units. Which economic concept best characterizes Zane’s production process?

Back

Diminishing marginal returns

Front

Which of the following will happen if the firm continues to hire additional units of labor beyond L2 in the short run? Options: The firm’s marginal cost will decrease. The firm will begin experiencing diminishing marginal returns. The firm’s fixed cost will increase. The average product of labor will be equal to zero. The total product of labor will decrease.

Back

The total product of labor will decrease.

Front

A firm’s short-run production function uses capital and labor as inputs. Assume the quantity of capital is fixed in the short run. The marginal product of labor will decrease as more labor is used in the short run because each unit of labor will have

Back

fewer units of capital to work with

Front

In microeconomics, the short run is defined as which of the following? A period that is less than one year, A period that is between one year and four years, A period that is too short for a firm to be able to change its level of output, A period during which some inputs in a firm’s production process cannot be changed, A period during which a firm’s fixed costs exceed its variable costs

Back

A period during which some inputs in a firm’s production process cannot be changed