The accompanying table describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and each worker is paid $10 per hour.Calls Per HourNumber of Telephones Per HourNumber of Workers Per Hour11221461616182211024112 Average variable cost is minimized when output is approximately:
A. 24 units.
B. 16 units.
C. 22 units.
D. 6 units.
Answer: C
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Refer to the scenario above. The principal in this case is:
A) $300. B) $1,000. C) $1,300. D) $2,300.
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.
In purchasing diamonds and water, a consumer would maximize utility by
a. dividing expenditure equally between those two goods b. equating the marginal utilities from each of those two goods c. equating average utility per diamond with average utility per unit of water d. equating the total utility per diamond with the total utility per unit of water e. equating marginal utility per dollar spent on each of those two goods
Which of the following described the attitude of most economists toward the U.S.-based automobile sector during the 2008 recession?
A. If their industry failed, it would not take the rest of the economy down with it. B. It should be taken over by the Federal Government. C. It needed to receive subsidies from the government in order to produce hybrid cars. D. It needed to be bailed out, just like the financial sector was bailed out.