Assume fixed costs are 470 and labor costs $20 per unit. The first laborer produces 20 units of output. Subsequent hires add 5 units less to production than the previous worker. Thus the second worker adds 15, the third adds 10 etc. If the fifth laborer adds 25 units to the short run production output and the sixth laborer adds 20 units to the total output and the firm can hire all the labor it wants at the going wage we can be sure that
A. average variable cost is increasing.
B. marginal cost is increasing.
C. average total cost is increasing.
D. None of these is correct because all the costs listed are decreasing.
Answer: B
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In order to derive a market demand curve from individuals' demand curves, we add up the
A. incomes of all buyers, assuming that their tastes remain constant. B. various individuals' quantities demanded at each price. C. various prices that each buyer is willing and able to pay. D. total number of buyers in the market at each time period.
The real value of money ________ as the price level falls
A) decreases B) remains the same C) increases D) none of the above
Refer to Table 20-1. The labor force participation rate for this simple economy equals
A) (1,100/15,000 ) × 100. B) (1,000/15,000 ) × 100. C) (1,000/1,100 ) × 100. D) (1,100/20,000 ) × 100.
John has $4000 in savings to buy an engagement ring for his girlfriend even though he has no plans to propose in the near future. When his transmission needs to be replaced in his car, John charges the $2000 worth of auto repair. John's decision is an example of:
A. over consumerism. B. people recognizing that money is fungible. C. people making false distinctions about their money. D. everyday expenses being easier to charge than big purchases.