Table 13-9

$$\begin{array} { | c | c | c | c | }
\hline \begin{array} { c }
\text { Labor } \
\text { (Number of w orkers) }
\end{array} & \begin{array} { c }
\text { Output } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Fixed Cost } \
\text { (Dollars) }
\end{array} & \begin{array} { c }
\text { Variable Cost } \
\text { (Dollars) }
\end{array} \
\hline 0 & 0 & 30 & 0 \
\hline 1 & 100 & 30 & 15 \
\hline 2 & 180 & 30 & 30 \
\hline 3 & 240 & 30 & 45 \
\hline 4 & 280 & 30 & 60 \
\hline 5 & 300 & 30 & 75 \
\hline
\end{array}$$
-Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its total-cost curve is
A)constant.
B)increasing at a decreasing rate.
C)increasing at an increasing rate.
D)unknown because there is no relationship between a firm's production function and its total-cost curve.

Question

Table 13-9
​
​
 $$\begin{array} { | c | c | c | c | } 
\hline \begin{array} { c } 
\text { Labor } \
\text { (Number of w orkers) }
\end{array} & \begin{array} { c } 
\text { Output } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Fixed Cost } \
\text { (Dollars) }
\end{array} & \begin{array} { c } 
\text { Variable Cost } \
\text { (Dollars) }
\end{array} \
\hline 0 & 0 & 30 & 0 \
\hline 1 & 100 & 30 & 15 \
\hline 2 & 180 & 30 & 30 \
\hline 3 & 240 & 30 & 45 \
\hline 4 & 280 & 30 & 60 \
\hline 5 & 300 & 30 & 75 \
\hline
\end{array}$$
-Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its total-cost curve is
A)constant.
B)increasing at a decreasing rate.
C)increasing at an increasing rate.
D)unknown because there is no relationship between a firm's production function and its total-cost curve.

Quizplus · Accepted Answer

The total cost is the sum of fixed and variable costs. As labor increases, the variable cost increases, causing the total cost to increase. The increase in total cost is at an increasing rate due to diminishing marginal returns, as each additional worker contributes less to output than the previous one.

Table 13-9 ​ ​ -Refer to Table 13-9

Table 13-9

-Refer to Table 13-9