Assume Capital Is Fixed at 2 Units and the Wage

question 26

Short Answer

Assume capital is fixed at 2 units and the wage rate of labor is $200.
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 ______.

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Definitions:

Large Organizations

Entities characterized by a vast scope of operations, significant employee count, and extensive organizational structures.

B2B

Refers to business-to-business transactions, where one company provides products or services directly to another company.

Buying Systems

The organizational structures and processes through which companies purchase goods and services.

Committee

A group of individuals appointed to perform a specific task or to deliberate on a particular issue, often within a larger organization or assembly.