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

question 52

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 its minimum value,marginal cost is $___________.

• A)$1,000/2,025
• B)$1,000/1,925
• C)$1,000/1,800
• D)$1,000/2,700
• E)none of the above

Determine the most profitable product under resource constraints.

Distinguish between variable and fixed costs in pricing decisions.

Understand the variable cost method of cost-plus pricing and its application.

Understand the concepts of cost centers, profit centers, and investment centers and their differences.