Marginal Cost of Sweatshirts Reference: Ref 18-3 _(Table: Marginal Cost of Sweat

Question

Marginal Cost of Sweatshirts Reference: Ref 18-3 _(Table: Marginal Cost of Sweatshirts) Examine the table Marginal Cost of Sweatshirts. The marginal cost of the fourth sweatshirt is: $9. $20. $24. $15. Diminishing marginal returns occur when: each additional unit of a variable factor adds more to total output than the previous unit. each additional unit of a variable factor adds less to total output than the previous unit. the marginal product of a variable factor is increasing but at a decreasing rate. total product decreases. The long run is a period of time in which: the firm will not be able to make a profit. at least one input is fixed. the firm is guaranteed to be able to make a profit. a firm can adjust the quantity of any input. For most firms, economic profit is: less than accounting profit. equal to accounting profit. greater than accounting profit. Table: Andrew's Garage Reference: Ref 21-4 _(Table: Andrew's Garage) The table gives the production function for Andrew's Garage. If labor is the variable input and number of cars serviced is the output, what is the marginal product of labor when the number of workers rises from 3 to 4? 10 8 6 4

Explanation / Answer

1) Marginal cost of 4th shirt = 48-33 = 15

2) 2nd option

3) 4th option

4) less than accounting profit. Eco profit = A/c profit - opportunity cost

5) Marginal productivity of 4th labour = 36 -30 =6

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---