Week 9 Quiz

In the course's illustrative bakery, 0 to 6 workers in one fixed kitchen make 0, 10, 25, 45, 60, 70, and 75 loaves a day. What is the marginal product of the 4th worker?

Select one.

• 60 loaves
• 15 loaves
• 45 loaves
• 12.5 loaves

In the course's illustrative bakery, 0 to 6 workers in one fixed kitchen make 0, 10, 25, 45, 60, 70, and 75 loaves a day. With which worker do diminishing marginal returns set in?

Select one.

• The 1st worker, since each worker shares the kitchen
• The 3rd worker, since output per worker peaks there
• The 4th worker, since the extra loaves first shrink there
• The 6th worker, since that worker is the least skilled

In the course's illustrative bakery, 0 to 6 workers in one fixed kitchen make 0, 10, 25, 45, 60, 70, and 75 loaves a day. What is the average product with 5 workers?

Select one.

• 10 loaves per worker
• 70 loaves per worker
• 15 loaves per worker
• 14 loaves per worker

In the course's illustrative chair workshop, fixed cost is 60 dollars a day and total cost is 60, 90, 110, 126, 148, 180, and 228 dollars for 0 to 6 chairs a day. What does the 5th chair add to the workshop's costs?

Select one.

• 32 dollars
• 36 dollars
• 180 dollars
• 24 dollars

In the course's illustrative chair workshop, fixed cost is 60 dollars a day and total cost is 60, 90, 110, 126, 148, 180, and 228 dollars for 0 to 6 chairs a day. At what output is average total cost lowest, and what is it?

Select one.

• 16 dollars, at the 3rd chair
• 36 dollars, at 5 chairs
• 22 dollars, at 3 and 4 chairs
• 10 dollars, at 6 chairs

In the course's illustrative chair workshop, fixed cost is 60 dollars a day and total cost is 60, 90, 110, 126, 148, 180, and 228 dollars for 0 to 6 chairs a day. Which statements about the workshop are true? Select all that apply.

Select every option that applies.

• Its 60 dollars of fixed cost is paid even on a day it makes no chairs.
• Its average fixed cost falls with every extra chair it makes.
• The 1st chair's marginal cost is 90 dollars.
• Its marginal cost includes the 60 dollars of fixed cost.

In the course's illustrative chair workshop, fixed cost is 60 dollars a day and total cost is 60, 90, 110, 126, 148, 180, and 228 dollars for 0 to 6 chairs a day. The 6th chair adds 48 dollars to total cost. What happens to average total cost when the workshop goes from 5 chairs to 6?

Select one.

• It keeps falling, because the fixed cost is spread over six chairs
• It stays where it was, because one more chair cannot move an average
• It rises to 38 dollars, because the 6th chair's 48 is above the 5-chair average
• It rises to 48 dollars, because the average always equals the newest cost

True or false: the rent an owner could collect by leasing out a building she owns is a cost of using that building for her own shop, even though no one sends her a bill for it.

True or false.

• True
• False

In the course's illustrative phone-repair stand, revenue is 80,000 dollars a year and explicit costs are 50,000 dollars. The owner left a job paying 36,000 dollars a year and could have earned 1,000 dollars a year in interest on the savings she put into tools. What is the stand's economic profit?

Select one.

• 30,000 dollars a year
• 43,000 dollars a year
• −37,000 dollars a year
• −7,000 dollars a year

In the course's illustrative phone-repair stand, revenue is 80,000 dollars a year and explicit costs are 50,000 dollars. The owner left a job paying 36,000 dollars a year and could have earned 1,000 dollars a year in interest on the savings she put into tools. Which of these is an implicit cost of running the stand?

Select one.

• The 36,000-dollar salary she gave up
• The rent she pays for her stall
• The parts she buys for repairs
• The insurance bill she pays each year