Suppose That for a Particular Firm the Only Variable Input

question 329

Multiple Choice

Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that marginal cost of the third worker hired is $40, and the average total cost when three workers are hired is $50. What is the total cost of production when three workers are hired?

• A)$50
• B)$90
• C)$120
• D)$150

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Definitions:

Real Property

Land and anything permanently attached to it, such as buildings and structures.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful acts of an employee or agent, when such acts occur within the scope of employment or agency.

Commits a Tort

Engaging in an act that causes harm or injury to another person, leading to legal liability under civil law.

Term Partnership

A specific partnership established for a predetermined duration or until a project is completed.