Consider a firm that has just built a plant, which cost $1,000. Each worker costs $5.00 per hour. Based on this information, fill in the table below
Number of Worker Hours Output Marginal Product Fixed Cost Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost
0 0 -- -- --
50 400
100 900
150 1300
200 1600
250 1800
300 1900
350 1950
Number of Worker Hours Output Marginal Product Fixed Cost Variable Cost Total Cost Marginal Cost Average Variable Cost Average Total Cost
0 0 -- 1,000 0 1,000 -- -- --
50 200 4 1,000 250 1,250 1.25 1.25 6.25
100 700 10 1,000 500 1,500 0.50 0.7143 2.1429
150 1400 14 1,000 750 1,750 0.3571 0.5357 1.25
200 1650 5 1,000 1000 2,000 1 0.6061 1.2121
250 1800 3 1,000 1250 2,250 1.6667 0.6944 1.25
300 1900 2 1,000 1500 2,500 2.50 0.7895 1.3158
350 1975 1.5 1,000 1750 2,750 3.3333 0.8861 1.3924
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Technological innovations are not necessarily major scientific breakthroughs
Indicate whether the statement is true or false
The Social Security system in the United States today is
A. actuarially sound. B. composed of a private pension fund into which workers have paid and who will withdraw their invested funds upon retirement. C. currently in no danger of running out of money in the long run. D. no longer a “pay as you go” system.
Price and total revenue are directly related when demand is
A. unit price elastic. B. price elastic. C. perfectly price elastic. D. price inelastic.
The criterion introduced by the Supreme Court in 1911 to determine whether a particular action was illegal or legal within the terms of the Sherman Act is called the
A. Rule of Reason. B. Interstate Commerce Rule. C. Federal Trade Commission Rule. D. Clayton Act Rule.