1.Consider the example of Xena’s copy shop. Adding a second worker increased output by 300 pages. If she added a third worker, her output would increase by fewer than __________ pages. 2. If a firm is...

1.Consider the example of Xena’s copy shop. Adding a second worker increased output by 300 pages. If she added a third worker, her output would increase by fewer than __________ pages.

2. If a firm is subject to diminishing marginal returns, an increase in the number of workers decreases the quantity produced. __________ (True/False)

3. Fill in the blanks with “at least” or “less than”: If a firm doubles one input but holds the other inputs fixed, we normally expect output to __________ double; if a firm doubles all inputs, we expect output to __________ double.

4. Fill in the blanks with “flexible” or “inflexible”: Diminishing returns is applicable when a firm is __________ in choosing inputs, but does not apply when a firm is __________ in choosing its inputs.

5. Arrows up or down: As a farmer adds more and more fertilizer to the soil, the crop yield __________, but at a __________ rate. (Related to Application  4 on page 68.)