-Assume Labor-The Only Variable Input of a Firm-Has Average and Marginal

question 106

Multiple Choice

-Assume labor-the only variable input of a firm-has average and marginal product curves shown in the figure above.The price of labor is $1,000 per unit .At minimum average variable cost,the firm employs __________ units of labor and minimum average variable cost is reached at __________ units of output.

• A)300; 810,000
• B)300; 962,500
• C)450; 962,500
• D)500; 540,000
• E)none of the above

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Definitions:

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, or preferences through study, experience, or teaching.

Behaviour

The way in which an individual acts or conducts themselves, especially towards others.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired: a response which is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Stimulus

An external event or condition that influences an organism's behavior or physiological response.