Economics in the News April 5, 2020 First study the news article linked below. Total Output of Online Gym Classes "It's critical': Shuttered fitness studios move online to stay afloat in era of COVID-19 1. According to the news article, why do "digital innovators" in the fitness market stand to benefit from the COVID-19 pandemic? "Digital innovators" stand to benefit because Average product Average and marginal product (classes per worker) O A. there is a captive audience of potential customers O B. they can launch GoFundMe campaigns O C. they have staff who are technologically savvy O D. they can apply for loans from the Canada Emergency Business Account 2. Think about the total output curve of a firm that produces fitness classes. Labour is measured on the x-axis and classes are measured on the y-axis. Does the firm experience diminishing returns? The firm experiences diminishing returns when Quantity of workers O A. as more labour is hired, a new worker produces less than the previously hired worker B. the price of a membership rises C. the gym closes because of the COVID-19 pandemic O D. not enough clients sign up to use the gym Time Remaining: 02:55:59 Next ASUS F12 Prt Sc/Imprecr. Insert/Defil. Del/Suppr. FO F7A F8 La FO a Flo F2 Echapp. & 6 2 3 @ Q W E R K S D F G H Lock laj. A B N MO A. as more labour is hired, a new worker produces less than the previously hired worker O B. the price of a membership rises O C. the gym closes because of the COVID-19 pandemic O D. not enough clients sign up to use the gym 3. Think about the total output curve for a firm that produces fitness classes. Labour is measured on the x-axis and classes are measured on the y-axis. If the classes move online, can the total output curve shift ppward? The total output curve O A. cannot shift upward because the marginal product of labour will eventually decrease O B. shifts upward if each worker produces more classes online than he or she produced in the gym O C. cannot shift upward because fewer people will pay for an online class D. shifts upward because fixed costs decrease ASUSJ C. cannot shift upward because fewer people will pay for an online class O D. shifts upward because fixed costs decrease 4. How does the marginal product of any new worker hired influence the average product of all workers? If marginal product O A. is less than average product, then average product decreases Average and marginal pr O B. exceeds average product, then average product increases O C. equals average product, then average product is at its maximum O D. All of the above are correct. 5. Graphing Question The graph shows a fitness firm's average product curve when it produces online classes. Draw and label the firm's marginal product curve. The marginal product curve must show increasing returns initially and decreasing returns eventually. ASUS FI F8 FO F10 F7 F5 F6 F3 F4 Esc Echapp. %