Consider a Basket-Producing Firm with Fixed Capital

question 104

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

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Definitions:

Mirror Images

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A socio-psychological phenomenon whereby a person is less likely to take responsibility for action or inaction when others are present.

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The act of someone stepping in to help or intervene when they see another person in trouble, influenced by various psychological and situational factors.

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The organization and deployment of services and resources in reaction to emergencies to minimize their adverse effects.