1. Wally's Wheelbarrows Inc. has a total cost of $50,000 producing 1,000 wheelbarrows in a month. Suppose Wally wants to increase output and is able to change all his inputs next month. The following month his total costs are $70,000 producing 1,300 wheelbarrows.

Which is true?

a)Over the two months Wally is now experiencing economies of scale in the Short Run.

b)Over the two months Wally is now experiencing economies of scale in the Long Run.

c)Over the two months Wally is now experiencing constant returns to scale in the Short Run.

d)Over the two months Wally is now experiencing constant returns to scale in the Long Run.

e)Over the two months Wally is now experiencing diseconomies of scale in the Short Run.

f)Over the two months Wally is now experiencing diseconomies of scale in the Long Run.

2.At a moment in time a firm has ATC=25, AVC=20 and TFC=100. How many units are being produced?

3.Q: 4 10 15 22 27 31 33

L: 1 2 3 4 5 6 7

What is the MP of the 6th worker?

Numeric answer: