11. From the table on page 265 (257 if you have the 6th edition of the book): If this company was able to charge $310 for each pair of shoes it should hire ___ workers. At this point the total product of labor would be ___ and the company would _____________ labor costs.

1. 9; 66; not be in a position to minimize
2. 4; maximized; minimize
3. 10; 66; minimize
4. 6; 60; have falling
5. 9; 55; have rising

12.From the table on page 265: If this company faces falling demand next year - and was operating where your indicated they would be in question #11 - the company would ______ the number of workers to _____ in order to_________ the marginal cost of __________.

1. Decrease; 7; decrease; capital
2. Decrease; less than 9; decrease; labor
3. Increase; 9; increase; productivity
4. Decrease; 3; minimize; labor
5. A or D would be optimal for this company.

VARIABLE INPUT # OF WORKERS TPL MPL APL FC VC TC AFC AVC ATC MC 0 0 500 0 500 0 0 0 0 500 300 800 71.43 42.86 114.29 42.86 18 11 9 500 600 1100 27.78 33.33 61.11 27.27 11 500 900 1400 15.15 27.27 42.42 20.00 11.5 500 1200 1700 10.87 26.09 39.96 23.08 11 500 1500 2000 9.09 27.27 36.36 33.33 10 500 1800 2300 8.33 30 38.33 60 9 500 2100 2600 7.94 33.33 41.27 100 ANOH NWVID WUT 8.13 500 2400 2900 7.69 36.92 44.61 150 7.33 500 2700 3200 7.57 40.19 48.48 300 6.6 500 3000 3500 11 64 5.82 500 3300 3800 11 1 12 60 5 500 3600 4100 * * Undefined TPL: The total product of labor, also known as total output MPL: The marginal product of labor (the additional output produced from each additional worker). MPL = the change in TPL / the change in labor APL: The average product of labor. APL = TPL / L FC: Fixed costs VC: Variable costs TC: Total costs. Total costs = FC + VC AFC: Average fixed costs. AFC = FC / TPL AVC: Average variable costs. AVC = VC / TPL ATC: Average total costs. ATC = AFC + AVC or TC/TPL MC: Marginal cost. MC = The change in TC/MPL : The change in total cost divided by the marginal product of labor