Suppose That the Firm's Only Variable Input Is Labor

question 64

Multiple Choice

Suppose that the firm's only variable input is labor.When 50 workers are used,the average product of labor is 50 and the marginal product of labor is 75.The wage rate is $80 and the total cost of the fixed input is $500.Suppose that installation of a new assembly line increases the output produced per worker.The cost per unit of output

• A)will increase.
• B)will decrease.
• C)will be unchanged.
• D)is at its maximum.
• E)is at its minimum

---

Definitions:

Red Tape

Bureaucratic procedures and rules considered excessive and hindering processes.

Paralysis By Analysis

A situation where decision-making is hindered or halted by the excessive analysis of data or overthinking.

Marketing Plans

Structured documents or strategies that outline marketing efforts and actions intended to achieve specific marketing objectives.

Marketing Mix Factors

The elements of a marketing strategy which include product, price, place, and promotion, essential for achieving marketing objectives.