Consider a House- Construction Firm with Fixed Capital

question 73

Multiple Choice

Consider a house- construction firm with fixed capital.The firm can build 8 houses per year with 16 workers and 8.8 houses per year with 17 workers.If it is currently building 8.8 houses per year,which of the following is true?

• A)The firm has not yet reached the point of diminishing average productivity.
• B)The firm has already passed the point of diminishing marginal productivity.
• C)The marginal product is below the average product.
• D)Average product is at a maximum with 17 workers.
• E)Average product is at a maximum with 16 workers.

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Definitions:

Low-context Culture

Cultures where communication is explicit, messages are direct, and understanding is based on verbal expression.

Body Language

Nonverbal communication through physical behaviors, such as gestures, postures, and facial expressions, which can convey messages or emotions.

Contextual Cues

Environmental or situational elements that influence perception, understanding, or behavior in given settings.

Holder in Due Course

A person who has acquired a negotiable instrument in good faith and for value, thus having certain legal protections.