Consider a Basket-Producing Firm with Fixed Capital

question 143

Multiple Choice

Consider a basket-producing firm with fixed capital.If the firm can produce 24 baskets per day with 3 workers and then increases production to 36 baskets per day with 4 workers,then which of the following statements is definitely true?

• A)The firm has passed the point of diminishing marginal productivity.
• B)The marginal productivity of the fourth worker is 9.
• C)The firm has passed the point of diminishing average productivity.
• D)With 4 workers,the average product is greater than the marginal product.
• E)With 4 workers,the marginal product is greater than the average product.

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Definitions:

Control

In experimental research, the process of holding factors constant to isolate the effect of the independent variable on the dependent variable.

Epistemologies

The study or theory of the nature, sources, and limits of knowledge, reflecting on how we know what we know.

Ontologies

Formal representations of knowledge within a domain, structured in a way that enables understanding and reasoning about the entities and their interrelations within that domain.

Idiographic Approach

A research approach focusing on understanding the unique aspects of individual cases or entities rather than seeking generalizable truths.