Consider a House-Construction Firm with Fixed Capital

question 99

Multiple Choice

Consider a house-construction firm with fixed capital.The firm can build 8 houses per year with 16 workers and 8.8 houses per year with 17 workers.If it is currently building 8.8 houses per year,which of the following is true?

• A)Average product is at a maximum with 16 workers.
• B)Average product is at a maximum with 17 workers.
• C)The marginal product is below the average product.
• D)The firm has already passed the point of diminishing marginal productivity.
• E)The firm has not yet reached the point of diminishing average productivity.

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Definitions:

Successful Leaders

Individuals who achieve desired results and outcomes through effective leadership, often characterized by strategic thinking, vision, and the ability to inspire others.

Reassure

To give support or confidence to someone, often by providing them with assurances or alleviating their fears or concerns.

Machiavellian Leader

A leader who manipulates and deceives for personal gain, often disregarding ethical standards.

Ideological Commitment

The strong adherence to a particular set of ideals, beliefs, or political doctrines, often influencing one's behavior and actions.