When Caroline's Dress Factory Hires Two Workers, the Total Product

question 191

Multiple Choice

When Caroline's dress factory hires two workers, the total product is 50 dresses.When she hires three workers, total product is 60, and when she hires four workers, total product is 75.The slope of the marginal product curve when two to four workers are hired is

• A)upward sloping.
• B)downward sloping.
• C)vertical.
• D)horizontal.

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced; it is the cost of producing an additional unit of a good or service.

Purely Competitive

Market structures characterized by many buyers and sellers, where no single entity has the market power to influence the price of a homogeneous product.

Profit-Maximizing

The process by which a firm adjusts its production and sale to achieve the highest possible profit.

Short-Run

A period during which at least one input in the production process is fixed, affecting the firm's ability to adjust to changes in demand.