The table below shows output,marginal cost,and average variable cost for the production of pairs of shoes.All costs are in dollars. TABLE 7- 6
-Refer to Table 7- 6.Suppose this firm is producing 210 pairs of shoes per time period and that the variable factor of production is labour.Which of the following statements best describes this firm's production?
A) Each additional unit of labour employed reduces the average variable cost of the pairs of shoes.
B) Additional units of labour employed will increase the average variable cost of producing shoes.
C) Marginal cost is higher than average variable cost,so marginal product must be rising.
D) Marginal cost is higher than average variable cost,so average product must be rising.
E) The firm is producing below its capacity.
Correct Answer:
Verified
Q47: The period of time over which the
Q48: The following data show the total
Q49: What information is provided by average,marginal,and total
Q50: Suppose that when a firm hires one
Q51: With regard to economic decision making for
Q53: Suppose a firm is producing 100 units
Q54: Refer to Table 7- 3.The average variable
Q55: Which of the following statements about the
Q56: The period of time over which all
Q57: In the short run time horizon for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents