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Economics

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1. If the production function is F(K,L) =KL and capital is fixed at 1 unit, then the marginal product of labor when L = 25 is a. 14 b. 1/10 c. 15 d. None of the statements associated with this question are correct 2. Suppose the production function is given by: F(L, K) = min {2L, 3KH. Suppose that you have employed L=4 and K=9 units of inputs. What is the marginal product of the fourth worker? What is the average product of labor? a. MP, = 2; AP, = 4 b. MP, does not exist = 4; AP, = 6 c. MP, does not exist; AP, = 2 d. MP= 4; AP, = 2 3. Determine whether MP, and MPx of the production function are: f(L,K) = In L+2K+ +5 a. decreasing in Labor and decreasing in Capital b. increasing in Labor and decreasing in Capital c. decreasing in labor and increasing in Capital d. increasing in Labor and Capital 4. Total product begins to fall when: a. Marginal product is maximized b. Marginal product begins to decline c. Marginal product is negative d. Marginal product is positive but declining 5. If the graph of a production function which uses only labor is a linear function, then the slope of MPP is: a. Positive b. Zero c. Negative d. Cannot be determined