 QUESTION

# Holding capital fixed at K=2 units, the firm's production table shows when labor units (L) = 1, output (Q)=5; L=2, Q=11; L=3, Q=16; L=4, Q=20; L=5,...

Holding capital fixed at K=2 units, the firm's production table shows when labor units (L) = 1, output (Q)=5; L=2, Q=11; L=3, Q=16; L=4, Q=20; L=5, Q=22. Also, the firm can sell each unit of output at a price P=\$2.

If so, the marginal product of labor MPL for the 4th unit of labor is ____.

Question options: I answered C, 16. Is this correct

a)

20

b)

8

c)

16

d)

4

Question 12

0 / 1 point

You estimate a short-run production function to be Q = 16L0.8 which gives a Marginal Product of Labor function MPL = 0.8*16L-0.2 = 12.8/L0.2 If the product made by the labor sells at a price P=\$8 per unit, then the Marginal Revenue Product of Labor MRPL for the 100th labor unit is ______. If labor costs wage = \$46 per labor unit, then the firm ______ hire the 100th labor unit.

Question options: I answered D, \$52.6; should. Is this correct?

a)

\$40.8; should not

b)

\$47.6; should

c)

\$35.7; should not

d)

\$52.6; should

Question 13

0 / 1 point

You estimated a short-run production function to be Q = 10L0.5 where L is units of labor. If so, the Marginal Product of Labor for the 16th unit of labor is _______.

Question options: I answered C, 3.75. Is this correct?

a)

5.0

b)

1.25

c)

3.75

d)

2.5