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

question 76

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 .The average variable cost when 550 units of labor are employed is $_________,and the marginal cost when 550 units of labor are employed is $____________.

• A)$1,000/1,925; $1,000/825
• B)$1,000/2,700; $1,000/2,025
• C)$4.50; $2.75
• D)$0.35; $2.70
• E)none of the above

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Definitions:

Pc

Often synonymous with Personal Computer, a general-purpose electronic computing device designed for individual use.

Solution

A mixture in which all the components are evenly distributed at the molecular level, or a way to solve a problem.

Tid

An abbreviation for "ter in die," a medical term meaning three times a day, usually in the context of prescribing medication.

Bid

An offer made by an individual or entity to buy something.