Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 4 workers, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2,
what is the average total cost of production when the firm hires 5 workers?
a. $2.00
b. $20.00
c. $20.80
d. $22.80
a
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Andrew's utility of wealth schedule is given in the above table. The table indicates that his marginal utility of wealth ________ as his wealth increases
A) diminishes B) is constant C) increases D) increases first and then diminishes
The value of the marginal product of labor is given by the product of the marginal product of labor and the market wage rate
Indicate whether the statement is true or false
The education and skills of workers are factors driving
A. productivity functions. B. economic inflation. C. economic growth. D. inflationary growth.
Along the Keynesian range of the aggregate supply curve, higher aggregate demand fails to stimulate output and only causes inflation
a. True b. False Indicate whether the statement is true or false