Marginal Product

Q. Compete the following table, on the assumption that for each additional unit of the variable factor, marginal product decreases by 5 units of output.

Units of Labour	TP	AP	MP
- - - -	- - - -	- - - -	- - - -5

Q. The addition to total cost by producing an additional unit of output by a firm is called _______.

1. average cost
2. variable cost
3. marginal cost
4. opportunity cost

Q.

Hours of labour worked output	Total output
1	300
2	355
3	400
4	390

Find the marginal output for 3 hours of labour.

1. 50
2. 45
3. -60
4. 65

Q. Marginal cost is the cost _______________.

1. of the last unit produced
2. of the marginal unit
3. of the marginally efficient unit
4. of the average unit of production

Q. ___________ is the change in Total Product, for one unit change in the quantity of Variable Factor.

1. Total Product
2. Average Product
3. Marginal Product
4. All of the above

Q. Marginal product is _______________.

1. what is produced when all factors of production are employed at optimum efficiency
2. the extra output obtained from employing an additional unit of the factor
3. what is left to the entrepreneur after he has paid all his expenses
4. annual output of the most efficient prodcuer in the industry

Q.

Hours of labour worked output	Total output
1	300
2	355
3	400
4	390

Find the marginal output when 2 hours of labour are deployed.

1. 65
2. 80.5
3. 55
4. -50

Q. Average cost includes both fixed cost and variable cost.

1. True
2. False

Q. Define or explain marginal utility.