Assume Capital Is Fixed at 4 Units and the Wage

question 60

Short Answer

Assume capital is fixed at 4 units and the wage rate of labor is $600.
a. As labor is increased from 1 to 2 units, AVC ______ (rises, falls) from $______to $______.
b. As labor is increased from 1 to 2 units, MC ______ (rises, falls) from $______ to $______.
c. As labor is increased from 3 to 4 units, AVC ______ (rises, falls) from $______ to $______.
d. As labor is increased from 3 to 4 units, MC ______ (rises, falls) from $______ to $______.

---

Definitions:

Negative Behaviour

Actions or conduct that are harmful, disruptive, or undesirable within a given context.

Trickle Down

A concept typically used in economics, suggesting that benefits for the wealthy will "trickle down" to everyone else; in other contexts, it can refer to the gradual spread of practices or benefits from higher to lower levels within a hierarchy.

High Self-esteem

A positive evaluation of oneself and confidence in one's abilities and worth.

High Conscientiousness

A personality trait characterized by diligence, carefulness, and thoroughness.