Table 13-5 -Refer to Table 13-5. Assume That Fixed Costs Are $500

question 643

Multiple Choice

Table 13-5
-Refer to Table 13-5. Assume that fixed costs are $500, and variable costs are $100 per worker. For this firm, what are the shapes of the production function and the total-cost curve?

• A)Both the production function and total-cost curve are increasing at an increasing rate.
• B)Both the production function and total-cost curve are increasing at a decreasing rate.
• C)The production function is increasing at an increasing rate, whereas the total-cost function is increasing at a decreasing rate.
• D)The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate.

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Definitions:

Atmospheric Nitrogen

The form of nitrogen gas (N2) that makes up a major portion of the Earth's atmosphere, largely inert and not directly usable by most living organisms.

Gladiolus

A genus of perennial flowering plants in the iris family known for its sword-shaped leaves and colorful flower spikes, popular in gardens and floral arrangements.

Stolon

Stem that grows horizontally along the ground and may give rise to new plants where it contacts the soil—e.g., the runners of a strawberry plant.

Bulb

An underground storage organ formed from swollen plant parts, containing nutrient reserves to support the plant's next cycle of growth.