Tackle the Test: Multiple-Choice Questions
- A production function shows the relationship between
inputs and
a. fixed costs.
b. variable costs.
c. total revenue.
d. output.
e. profit. - Which of the following defines the short run?
a. less than a year
b. when all inputs are fixed
c. when no inputs are variable
d. when only one input is variable
e. when at least one input is fixed - The slope of the total product curve is also known as
a. marginal product.
b. marginal cost.
c. average product.
d. average revenue.
e. profit.
4. Diminishing returns to an input ensures that as a firm
continues to produce, the total product curve will have
what kind of slope?
a. negative decreasing
b. positive decreasing
c. negative increasing
d. positive increasing
e. positive constant
5. Historically, the limits imposed by diminishing returns have
been alleviated by
a. investment in capital.
b. increases in the population.
c. discovery of more land.
d. Thomas Malthus.
e. economic models.
module 54 The Production Function 547
Section
(^10)
(^) Behind
(^) the
(^) Supply
(^) Curve:
(^) Profit,
(^) Production,
(^) and
(^) Costs
Quantity of electricity (kilowatts)
0
1
2
3
4
Quantity of ice (pounds)
0
1,000
1,800
2,400
2,800
Tackle the Test: Free-Response Questions
- Draw a correctly labeled graph of a production function that
exhibits diminishing returns to labor. Assume labor is the
variable input and capital is the fixed input. Explain how your
graph illustrates diminishing returns to labor.
Answer (4 points)
Quantity
of output
Quantity
of labor
TP
1 point:Graph with vertical axis labeled “Quantity of output” or “Q” and
horizontal axis labeled “Quantity of labor” or “L”
1 point:Upward sloping curve labeled “Total product” or “TP”
1 point:The slope of the total product curve is positive and decreasing
1 point:Explanation that a positive and decreasing slope illustrates
diminishing returns to labor because each additional unit of labor increases
total product by less than the previous unit of labor
- Use the data in the table below to graph the production
function and the marginal product of labor. Do the data
illustrate diminishing returns to labor? Explain.
Quantity of labor Quantity of output
LQ
00
119
236
351
464
575
684
791
896