Consider a Basket-Producing Firm with Fixed Capital

question 69

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

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Definitions:

Predictor of Behaviour

An indicator or factor that can be used to forecast future actions or tendencies of individuals or groups.

Theory of Reasoned Action

A psychological theory that predicts an individual's behavior based on their intention to engage in that behavior, influenced by attitudes and societal expectations.

Subjective Norms

The perceived social pressure to perform or not perform a particular behavior, influenced by the beliefs of significant others.

Cultural Roadblocks

Obstacles or barriers created by differences in cultural practices, beliefs, and values that hinder communication, understanding, or progress in various contexts.