The table below describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and each worker is paid $10 per hour.Calls PerHourNumber ofTelephonesPer HourNumber ofWorkersPer Hour0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225If the price of a telephone increases to from $5 to $10 an hour and nothing else changes, then:
A. total cost would not change.
B. marginal cost would not change.
C. fixed cost could not change.
D. marginal cost would increase by $5 at every level of output.
Answer: B
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The budget deficit refers to how much has been borrowed:
a. in one particular year. b. over time. c. against Social Security. d. to pay interest on loans.
Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8 . Suppose the boat dealer had overcharged the boat owner for the boat and refunded the overcharged amount. If the profit increases to $7.50 per fish, what was the value of the refund from the dealer?
a. $2.50 b. $25,000 c. $3.50 d. $35,000 e. $75,000
Ceteris paribus, for a farmer, corn and wheat are
A. Substitutes in production. B. Unrelated in a farmer's decision. C. Complements in production; by-products. D. None of the choices are correct.
Chris and Tony both produce tomatoes and pasta sauce. The table shows their possible production per month if both work the same number of 8 hour days. If Chris and Tony both decide to specialize and produce only the good in which they have a comparative advantage, then
A. Both Chris and Tony will produce only tomatoes. B. Chris will produce only tomatoes and Tony will produce only sauce. C. Both Chris and Tony will produce only sauce. D. Chris will produce only sauce and Tony will produce only tomatoes