This Phone Center Uses Only Equipment and Workers to Provide

question 41

Multiple Choice

This phone center uses only equipment and workers to provide service. $$\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (units) }\end{array} & \text { Equipment } & \text { Workers } & \text { Total Cost } & \begin{array} { c } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Variable Cost }\end{array} \\\hline 0.5 & 1 & 2 & & & \\\hline 1 & 1 & 4 & & & \\\hline 3 & 1 & 6 & & & \\\hline 8 & 1 & 8 & & & \\\hline 11 & 1 & 10 & & & \\\hline 12 & 1 & 12 & & & \\\hline\end{array}$$
For this firm,Marginal Cost

• A)equals Average Variable Cost at Average Variable Cost's minimum point.
• B)equals Average Total Cost at Average Total Cost's maximum point.
• C)is always greater than Average Variable Cost.
• D)is always less than Average Variable Cost.