Consider a Basket-Producing Firm with Fixed Capital

question 65

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 productivity 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)The firm has passed the point of diminishing average productivity.
• C)The marginal product is above the average product.
• D)The firm has not yet reached the point of diminishing marginal productivity.
• E)With 4 workers,the firm's average product of labour is 13.

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Promotion

Marketing strategies aimed at increasing the visibility, sales, and market share of a product or service.

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Consists of advertising, sales promotion, direct marketing, and public relations.

Advertising

Paid nonpersonal communication usually targeted at large numbers of potential buyers.

Direct Mail

A marketing strategy involving the sending of advertisements or promotional materials directly to potential customers via postal mail.