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5. (7 points) Mary's farm produces 400,000 chickens a year when she employs 20 people and 600,000 chickens a year when she employs 40 people.

5. (7 points) Mary's farm produces 400,000 chickens a year when she employs 20 people and 600,000 chickens a year when she employs 40 people. Which of the following statements is true (choose as many as you believe are correct)?

A. The average product of labor is constant as the farm moves from 20 to 40 workers.

B. Total production is diminishing as the farm moves from 20 to 40 workers.

C. The average product of labor is 20,000 chickens when the farm employs 20 workers. D. The average product of labor is 600,000 chickens when the farm employs 40 workers.

6. (7 points) When farmer Lucy employs 100 workers, her farm produces 450 tons of grain. Which of the following must be the farm's production when Lucy employs 50 workers for the farm to suffer from diminishing average product of labor? Choose as many options as necessary.

A. 200 tons of grain B. 0 tons of grain

C. 225 tons of grain D. 300 tons of grain

(7 points) Which of the following statements about a production function that exhibits diminishing average product of labor is false? Choose as many options as necessary.

A. For the average product of labor to diminish, the production function must slope down.

B. Let Z and Y be different number of farmers. If Z is larger than Y, then the slope of the ray to Z is steeper than the slope of the ray to Y. (Figure 2.14b will help you with this one.)

C. Diminishing average product of labor can be caused either by more labor being used in a fixed amount of land or by more land of worst quality being brought into cultivation as the amount of labor increases.

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