Suppose That for a Particular Firm the Only Variable Input

question 228

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 the average total cost when 5 units of output are produced is $80, and the marginal cost of the sixth unit of output is $160. What is the average total cost when six units are produced?

• A)$80.00
• B)$83.33
• C)$88.33
• D)$93.33

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Definitions:

Deculturation

Is the process by which the culture of an indigenous people or group is lost or destroyed.

Assimilation

The process by which individuals or groups absorb and integrate new information and experiences into their existing knowledge structures or cultural practices.

Business Practices

customary, habitual methods of operation that are engaged in by businesses.

Deculturation Strategy

A process of reducing or eliminating the cultural characteristics of a group or society, often in the context of mergers and acquisitions or colonization.