Question :13 Consider the same information in question will and the table with vour calculations. W hich of the following alternatives is correct? {a] When output is o = 5, avg. variable cost is equal to avg. fixed cost{.ll-'C = AFC} {b} When output is o = 13, avg. variable cost is greater than avg. fixed cost [AVIS :: AFC] {c} When output is q = T5, avg. variable cost is greater than avg. fixed costmli'i.' 3: .rfFL'} {d} When output is or = 90, avg. variable cost is smaller than avg. fixed costmift.' r: .I'IFC} Question :14 Consider the same information in question 01 and the table with your calculations. Using the same spreadsheet, add four new columns. In the rst two, calculate the Marginal Product of Labor EMPL} and Avg. Product of Labor [APL]. In the omer two, calculate ME and AW: as functions ofthe wage and product of labor l[see the book section on the sh ape of cost curves}. IWhich of the following alternatives is correct? {a] When output is o = E, the marginal product of labor is NFL = w = $50 {b} When output is o = 13, the marginal product oflabor is NFL = oft. = El {c} When output is o = Ill-B, the marginal product of labor is MP1 = 4 {d} When output is o = 110, the marginal product of labor is MP; = 3 [luestion :15 Consider the same information in question 01 and the table with 1mm calculations for question 04. Which of the following alte matives is correct? {a] When output is qr = 36, the average product of labor is APL = 1|} {bi When output is o = 56, the average product of labor is All-\"L = 12 {c} When output is o = 93, the average product of labor is AFL = 14 {d} When output is or = 1114, the average product of labor is APL = 15 Question [IS A. rm produces a singfe good using capital and labor as inpu. Its production function is o = mm.) = axeo' Assume that a = 'I. and E = 2. Which of the following alternatives is correct? {a] When A = [lull], this rrn's technology exhibits Decreasing Returns to Scale {DRSJ {b} When A = 11.33, this rrn's technology exhibits Conslant Returns to Scale {CRSJ {c} When A = 10, this rm's technology exhibits Increasing Returns to Scale {IRS} {d} When A :2: II], this rm's technology exhibits Economies of Scope Question 09 A. rm produces a single good using capital and la bor as inputs. Its production function is o = mm} = axt' Assume that o: = [1.2 and {3 = 11.3. Which ofthe following alternatives is correct? {a] When A = 10, this rm's technology exhibits Decreasing Returns to Scale {D RS] {bi When A = I15, this rm's technology exhibits Constant Remms to Scale [CR5] {c} When A = II], this rm's technology exhibits Increasing Returns to Scale {IRS} {cl} When A 3:: 1|], this rm's technology exhibits Economies of Agglomeration Question 61 The mole below reproduces part of Ta lole 6.1 in the textbook. Capital La bur om: K a o s 15: 35 56 T5 913 SB 15-1 103 116 IDIII'IJU'II-W-F-HHHUI WWMWWWMWWWW H D Let r = $26 be the price of one unit of capital, and w = $66 be the price of one unit of labor. Using the supporting spreadsheet provided on Canvas, add seven nev.r columns to this table calculating: Total Fixed Cost \"'3, Total 'v'arialole Cost WE], Total Cost [C], Average Fixed Cost MFG], Average 1rl'arialsle lCost MPH], Average Total Cost [AC], and Marginal Cost [MC]. Whit\" of the following alternatives is correct? {a] When output is or = 36, the marginal cost is ME = $5.66 {bi When output is of = T5, the marginal cost is ME = $3.16 {c} When output is o = 96, the marginal cost is ME = $6.29 {d} When output is of = 166, the marginal cost is ME = $6.46 Question 62 Consider the same information in questio n 61 and th e table with 1,.rour calculations. Which of the following alte matives is correct? {a] When output is of = 16, the average total cost is M? = $15.56 {lo} When output is o = 56, the average total cost is AS = $466.66 {c} When output is or = 66, the average total cost is AC = $123 {di When output is o = 164, the average total cost is At." = $16.66