Consider a Basket-Producing Firm with Fixed Capital

question 69

Multiple Choice

Consider a basket-producing firm with fixed capital.If the firm can produce 24 baskets per day with 3 workers and then increases production to 36 baskets per day with 4 workers,then which of the following statements is definitely true?

• A)Marginal product for this firm is rising.
• B)The marginal product of the fourth worker is 9.
• C)Average product for this firm is rising.
• D)The firm has passed the point of diminishing marginal productivity.
• E)With 4 workers,the average product is greater than the marginal product.

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Definitions:

Law of Charges

A fundamental principle stating that like charges repel each other, while opposite charges attract each other.

Like Polarity

A situation in electrical systems where magnetic or electrical poles of the same kind face each other or are aligned.

Unlike Polarity

Refers to opposite electrical charges or magnetic poles that attract each other.

Electro-Magnets

Devices that create a magnetic field when electric current flows through a coil wrapped around a metal core.