Consider a Basket-Producing Firm with Fixed Capital

question 104

Multiple Choice

Consider a basket-producing firm with fixed capital.If the firm can produce 36 baskets per day with 3 workers and then increases production to 44 baskets per day with 4 workers,then which of the following statements is true?

• A)The marginal product of the fourth worker is 11.
• B)With 4 workers,the marginal product is above the average product.
• C)The firm has not yet reached the point of diminishing marginal productivity.
• D)The firm has passed the point of diminishing marginal productivity.
• E)With 4 workers,the firm's average product of labour is 8.

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Definitions:

Humane Care

Providing care that is compassionate and respects the dignity of individuals, animals, or the environment, often emphasizing kindness and empathy.

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The act of influencing or controlling others in a skillful or sometimes unethical manner, often without their awareness or consent.

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Cognitive activities and functions of the mind, including perception, thinking, memory, and judgment.

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Possible risks or hazards that could lead to harm or adverse outcomes.