When Burger Barn hires one worker, 10 customers can be served in an hour. When Burger Barn hires two workers, 25 customers can be served in an hour. The marginal product of the second worker is ________ customers served per hour.
A. 15
B. 30
C. 40
D. 67.5
Answer: A
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Which of the following is TRUE?
A) APC - APS = 1 B) MPC + MPS = 1 C) 1 + APC = APS D) APC + MPS = 1
If a firm has excess capacity, it
A) produces less than its efficient scale. B) should advertise to maximize profits. C) should decrease its markup to increase its profit. D) is a perfectly competitive firm. E) must face a horizontal demand curve.
Game theory is applicable to oligopoly behavior because oligopolists
A) use strategic behavior. B) ignore rival firms. C) are price takers. D) can only be profitable if they collude.
Refer to the diagram. If labor is the only variable input, the average product of labor is at a:
A. minimum at point b.
B. maximum at point b.
C. maximum at point a.
D. maximum at point c.