Look at the figure below depicting isocost lines for the 1600s (flatter isocost HJ) and the 1700s (steeper isocost FG) in Britain. Assuming that points A and B represent the only two technologies available for producing cloth, which technology would British firms choose in the 1600s and which in the 1700s? 10 9 8 Tonnes of c 7 4 3 2 1700s 1 1600 H 1 2 3 4 5 6 7 8 9 10 11 12 13 Number of workers a) They would choose technology B in both the 1600s and the 1700s. b) They would choose A in the 1600s and B in the 1700s. c) They would choose B in the 1600s and A in the 1700s. They would choose technology A in both the 1600s and the 1700s. Answer: C Use this table for the following two questions: Number of workers 1 Cloth produced (meters) 1,250 Question 5 2 3 2,000 2,500 What is the marginal product of the third worker? 4 3000-3.95 (a) 3,750 meters of cloth. (b) 1,250 meters of cloth. 5 2,750 2,825 (c) 1,000 meters of cloth. (d) Cannot tell based on information provided. Answer: Question 6 3,2 The data in the table illustrate a production function such that the average product of labor is: Ya) Constant at all levels of employment. Diminishing at all levels of employment. (c) Constant for levels of employment up to three units, and then diminishing. (d) Cannot tell based on the information provided. Answer: C