The above figure shows the costs at Barney's Bagel Bakery. For which of the following levels of output does the average product of labor exceed the marginal product of labor?
A) at 1000 bagels daily
B) at 2000 bagels daily
C) at 3000 bagels daily
D) all of the above
C
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The flatter is the LM curve
A) the more effective is fiscal policy. B) the less effective is fiscal policy. C) the less is the interest sensitivity of saving. D) the less is the interest sensitivity of the money supply.
Refer to Scenario 7.3. Which of the following combinations of inputs is on the isoquant to produce 400 units of output?
A) L = 0, K = 400 B) L = 400, K = 0 C) L = 100, K = 100 D) all of the above E) A and B, but not C
Which demand curve would best represent a monopolistic competitor?
A. D1
B. D2
C. D3
D. None of these curves represent a monopolistic competitor.
In the short run, a firm's output level is 5 units. Its average cost is $40 and its fixed cost is $50. What is this firm's variable cost of producing 5 units?
A) VC = $50 B) VC = $100 C) VC = $150 D) VC = $175