-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:

Market Breadth

Market breadth is an indicator used to gauge the health of the equity market, based on the number of stocks advancing versus those declining.

Short Interest

The overall sum of shares in a certain stock that have been shorted by investors and still haven't been covered or concluded.

Odd-lot Trading

The buying or selling of stocks in quantities that are less than the standard trading unit or lot prescribed by a stock exchange.

Mental Accounting

A behavioral economics concept describing how people categorize and utilize money differently based on subjective criteria, often leading to irrational financial decisions.