The following table depicts the production relationship between units of labor and output of pepper on Pietrov’s Pepper Farm.
Labor
Peppers
Labor
Peppers
1
10
6
75
2
25
7
77
3
45
8
78
4
60
9
77
5
70
10
75
Graphically show the three zones of production corresponding to increasing, decreasing, and negative marginal product, noting the point of diminishing returns.
What will be an ideal response?
Figure 7-18
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Currency devaluation _______import consumers because______
a. Helps; imports are more expensive b. Hurts; imports are more expensive c. Helps; imports are less expensive d. Hurts; imports are less expensive
When marginal cost is below average total cost:
a. total cost is falling. b. total cost is rising. c. average total cost is falling. d. average fixed cost is rising. e. total variable cost is falling.
U.s. gnp
a. includes production of foreigners working in the U.S. and production of U.S. citizens working in foreign countries. b. includes production of foreigners working in the U.S. but excludes production of U.S. citizens working in foreign countries. c. excludes production of foreigners working in the U.S. but includes production by U.S. citizens working in foreign countries. d. excludes production of foreigners working in the U.S. and production by U.S. citizens working in foreign countries.
If the marginal cost curve for paper production were altered to reflect the cost of the odor imposed on surrounding areas, which of the following would occur?
A. The market price, accounting for the externality, would rise. B. The market price, accounting for the externality, would fall. C. The marginal cost curve would shift downward. D. It would become socially efficient to produce more paper.