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Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixec Number
Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixec Number of Workers Units of Output m Diminishing marginal returns become evident with the addition of the O a fourth worker. O b third worker. O c sixth worker. Q d second worker. Question 3 (1 point} 3 E- a O 0 Input m (4) E o O I g Figure B 0 Output Referto the short-run production and cost data. The curves of Figures A and B suggest that O a marginal cost reaches a minimum where marginal product is at its maximum. 0 b marginal cost and marginal product reach their minimum points at the same output. 0 c AVC cuts MC at the latter's minimum point. Q d marginal product and marginal cost reach their maximum points at the same output. The Sunshine Corporation finds that its costs are $40 when it produces no output. Its total variabie costs (TVC) change with output as shown in the accompanying table. Use this information to answerthe foliowing question. The average total cost 0f3 units of output is O a $35. 0 to $65. 0 c $21.67. 0 d $40. Question 5 (1 point) Average Costs (5) 0' x Output The diagram shows the short-run average total cost curves for five different plant sizes of a firm. If in the long run the firm shouid produce output Ox, it should do it with a plant of size 0 a #3. O b #4. O c #1. 0:1 #2
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