10. The marginal product of labor curve graphically shows the change in total product resulting from a:

A) One-unit increase in the quantity of a particular resource used, letting other resources vary

B) One-unit increase in the quantity of a particular resource used, holding constant other resources

C) Change in the cost of a variable resource

D) Change in the cost of a fixed resource

11. Over the range of positive, but diminishing, marginal returns for an input, the total product curve:

A) Falls

B) Rises at a constant rate

C) Rises at a decreasing rate

D) Rises at an increasing rate

The next question(s) are based on the following table that provides information on the production of a product that requires one variable input.

12. Refer to the above table. Marginal product is largest for the:

A) Second unit of variable input

B) Third unit of variable input

C) Seventh unit of variable input

D) Ninth unit of variable input

13. Refer to the above table. Diminishing marginal returns sets in with the addition of the:

A) First unit of input

B) Second unit of input

C) Third unit of input

D) Fourth unit of input

Use the following to answer question 14:

14. Refer to the above graph showing the marginal product (MP_L) and the average product of labor (AP_L). At which quantity of labor employed does diminishing marginal returns set in?

A) A

B) B

C) C

D) D

Use the following to answer question 15:

15. Refer to the above graph. It shows the total product (TP) curve. At which point does diminishing marginal returns set in?

A) Point a

B) Point b

C) Point c

D) Point d

16. If all resources used in the production of a product are increased by 10 percent and output increases by less than 5 percent, then the firm is experiencing:

A) Economies of scale

B) Diseconomies of scale

C) Constant returns to scale

D) Decreasing average total costs

Use the following to answer question 17:

17. Refer to the above graphs. Minimum efficient scale which includes constant returns to scale occurs at:

A) Q_{1 -} Q₂

B) Q_{2 -} Q₃

C) Q_{3 -} Q₄

D) Q_{2 -} Q₄