1. The average product of labor when 5 units of labor are employed is:

a. 68 c. 35

b. 44 d. 40

2. The marginal product of the fourth unit of labor is:

a. 38 c. -7

b. 24 d. 10

3. Marginal product is negative when more than:

a. 4 units of labor are used c. 7. units of labor are used

b. 6 units of labor are used d. 5 units of labor are used

4. Diminishing marginal returns begin with the:

a. First unit of labor c. third unit of labor

b. Second unit of labor d. seven unit of Labor

5. The marginal rate of technical substitution is:

a. the rate at which the firm can substitute labor for capital while holding total cost constant

b. the rate at which the firm can substitute labor for capital while holding output cost constant

c. the slope of the isocost curve

d. both a and c

e. none of the above

Fill in the blanks in the following table and answer questions 14: Units of Total Average Marginal Labor Output Product Product 1 40 2 48 3 138 4 44 5 24 6 210 7 29 8 27