Refer to the Following

question 79

Multiple Choice

Refer to the following:

Suppose that the firm's only variable input is labor. When 50 workers are used, the average product of labor is 50 and the marginal product of labor is 75. The wage rate is $80 and the total cost of the fixed input is $500.

-Which of the following is true?

• A) Average variable cost is increasing.
• B) Marginal cost is increasing.
• C) Average variable cost is decreasing.
• D) Cannot determine without more information.

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Definitions:

Precocious Puberty

A condition where a child's body begins changing into that of an adult (puberty) too soon, before the age of 8 in girls and 9 in boys.

Growth Spurt

A quick growth in stature and mass, usually happening in adolescence.

Recommended Amount

The quantity of something suggested for optimal health or performance, often found in dietary or exercise guidelines.

Vegetables

Edible plants or parts of plants, such as roots, leaves, and stems, that are consumed by humans as part of a meal.