Refer to the data in Figure 22.1. The profit-maximizing output for this firm is
A. Above 280 units.
B. 200 units.
C. 280 units.
D. 100 units.
Answer: B
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Over the range of output for which the average product of labor curve is negatively sloped, the average variable cost curve is positively sloped
Indicate whether the statement is true or false
What is meant by fixed cost? What kinds of things might be included in fixed cost?
What will be an ideal response?
Total utility
A) is equal to the sum of the marginal utilities of all units consumed. B) cannot decrease as a person consumes more and more of a good. C) has a constant rate of increase as a person consumes more and more of a good. D) is negative when marginal utility is declining.
People who can earn higher market wages
a. have a greater net utility associated with nonmarket work b. supply more hours to market work than people with lower wages c. are less likely to perform nonmarket work d. are more likely to view leisure as an inferior good e. experience less disutility associated with market work