The law of decreasing returns states that as a firm uses more of a Select one: o

Question

The law of decreasing returns states that as a firm uses more of a Select one: o a. fixed input, with a given quantity of variable inputs, the marginal product of the fixed input eventually decreases. /- ) b. fixed input and a variable input, the marginal product of the fixed input and the marginal product of the variable input both decrease. c. variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases. o d. variable input, total output will increase indefinitely e, variable input, output will begin to fall immediately. ity of labor (workers) ota (lawns mowed per week) 30 75 80 82 Kenya owns a lawn mowing company. His total product schedule is in the above table. marginal returns first occur with the Select one: a. first worker b. Second worker. c. fifth worker o d. fourth worker e. third worker. Scott owns a law-enforcement training operation in Boise, Idaho. He employs three trainers. The last trainer Scott hired increased Scott's total cost by $466 per week even though the trainer brought in only one new client. Hence Scott's Select one: a. total fixed cost of the last client equals $466. O b. marginal cost of the last client equals $466. C, marginal cost of the last worker equals $233. d. total variable cost equals $233. e.total variable cost equals $466.

Explanation / Answer

1) Option c is correct (by definition)

2) Option b is correct (MPL (1st worker) = 30 - 0 = 30, MPL (2nd worker) = 55 - 30 = 25)

3) Option b is correct (Marginal cost = $466)

4) Option b is correct (MPL - the change in total product when one more worker is hired)

5) Option d is correct (MPL (4th worker) = 15 - 9 = 6, MPL (5th worker) = 18 - 15 = 3)

6) Option b is correct (MPL (4th worker) = 15 - 9 = 6, MPL (5th worker) = 18 - 15 = 3)

7) Option c is correct (APL (4th worker) = 15/4 = 3.75, APL (5th worker) = 18/5 = 3.6)

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