Table 17.3 -Refer to Table 17.3.Suppose That the Market Price of the of the Product

question 100

Multiple Choice

Table 17.3
-Refer to Table 17.3.Suppose that the market price of the product is $2.If the wage is $40,the firm should hire ________ workers.

• A) 2
• B) 3
• C) 4
• D) 5

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Definitions:

Marginal Output

The additional output that results from the use of one more unit of a production input, assuming other inputs are constant.

AVC

Average Variable Cost, the per unit cost of variable inputs divided by the total output produced, indicating the variable cost for each unit of output.

ATC

Stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

Short Run

A period in economics during which some factors of production are fixed, making it impossible for a business to change major production facilities.