A Firm Produces 4,000 Units of Output Using 500 Workers

question 46

Multiple Choice

A firm produces 4,000 units of output using 500 workers.Marginal cost is $10,the wage rate is $160,and total fixed cost is $100,000.When output is 4,000 units,

• A)average variable cost is decreasing.
• B)average variable cost is increasing.
• C)average total cost is decreasing.
• D)average total cost is increasing.
• E)both a and c

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Definitions:

Deposit Ticket

This is a document that accompanies a bank deposit, listing the amounts of cash and checks being deposited and their respective details.

Negotiable Instrument

A document guaranteeing the payment of a specified amount of money, either on demand or at a set time, with the payer specified on the document.

Endorsement

Signing one's name on the back of a check or other document, authorizing its transfer or acceptance, or the act of publicly supporting a product, service, or candidate.

Cash Receipts

The collection of money, including coins, notes, and electronic payments, received by a business during a given period.