Some of the cost curves for Ike's Ice Cream Kitchen are given in the above figure. At which of the following levels of output does the marginal product of labor equal the average product of labor?
A) at 0 gallons
B) at 10 gallons
C) at 40 gallons
D) at 60 gallons
C
You might also like to view...
If, as a perfectly competitive industry expands, it can supply larger quantities at the same long-run market price, it is
A) a constant-cost industry. B) a fixed-cost industry. C) an increasing-cost industry. D) a decreasing-cost industry.
All of the following are reasons that health care costs have risen so much in the past few decades EXCEPT
A) the aging population. B) higher imports. C) new technologies. D) third party payments.
Consider a good for which the number of people who benefit from the good is large and the exclusion of any one those people is impossible. In this case, the market for this good will likely
a. be provided by a private firm rather than the government. b. have a free-rider problem. c. not exist. d. be limited to a small number of units of production.
Explain the relationship between interest rates and (1) investments in housing, and (2) business investments.
What will be an ideal response?