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:

Reciprocal Love

A mutual exchange of affection and feelings of love between individuals.

Passionate Love

An intense emotion of attraction and desire for another person, often characterized by feelings of euphoria and intimacy.

Companionate Love

A form of love characterized by deep affection, friendship, and emotional intimacy, often found in long-term relationships.

Reciprocal Love

A mutual exchange of love and affection between individuals.