CLEP Microeconomics chapter practice4 questions

15 Production and Marginal Product

These questions come directly from the chapter practice in the book. Choose the best answer, check your reasoning, and use the explanation to correct any gap.

Question 1

Question 1 of 4

A restaurant adds a sixth cook. Output rises from 148 to 166 meals per evening. The marginal product of the sixth cook is

Marginal product is the change in total output caused by the additional worker: 166-148=18 meals.
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B. 18 meals

Marginal product is the change in total output caused by the additional worker: 166-148=18 meals.

Question 2

Question 2 of 4

Which statement defines the short run for a firm?

The short run is defined by at least one fixed input, not by a specific number of months or by the firm's profit.
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D. At least one input is fixed.

The short run is defined by at least one fixed input, not by a specific number of months or by the firm's profit.

Question 3

Question 3 of 4

When marginal product is greater than average product, average product must

A marginal value above the current average pulls the average upward.
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A. rise

A marginal value above the current average pulls the average upward.

Question 4

Question 4 of 4

A firm adds identical workers to a fixed amount of equipment. Marginal product eventually falls primarily because

With a fixed input, additional workers eventually have less equipment or space at the margin, causing diminishing marginal product.
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E. fixed equipment becomes more thinly spread across workers

With a fixed input, additional workers eventually have less equipment or space at the margin, causing diminishing marginal product.

Quiz complete