Consider a Basket- Producing Firm with Fixed Capital

question 59

Multiple Choice

Consider a basket- producing firm with fixed capital.If the firm can produce 36 baskets per day with 3 workers and then increases production to 44 baskets per day with 4 workers,then which of the following statements is true?

• A)With 4 workers,the firm's average product of labour is 8.
• B)The marginal product of the fourth worker is 11.
• C)With 4 workers,the marginal product is above the average product.
• D)The firm has passed the point of diminishing marginal productivity.
• E)The firm has not yet reached the point of diminishing marginal productivity.

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Definitions:

-phylaxis

A suffix denoting protective measures or actions taken to prevent disease.

Hemorrhage

Excessive bleeding or the escape of blood from a ruptured blood vessel, either internally or externally.

Hemostasis

Hemostasis is the process by which the body stops bleeding through blood clotting and constriction of blood vessels.

Leukocyte

A white blood cell, part of the immune system, involved in defending the body against both infectious disease and foreign materials.