At 36 units of labor, a firm finds that both average product of labor and marginal product of labor equal 42. We can conclude that the average product curve at 36 units of labor is:

Select one:

a.

upward-sloping.

b.

downward-sloping.

c.

vertical.

d.

horizontal.

Diminishing marginal returns for the first four units of a variable input is exhibited by the marginal product sequence:

Select one:

a.

50, 50, 50, 50.

b.

50, 40, 30, 20.

c.

50, 110, 180, 260.

d.

50, 100, 150, 200.

Fixed costs include:

Select one:

a.

op management salaries.

b.

wage rates set by contract.

c.

salaries of production workers.

d.

costs of electricity used in production.

If the slope of the total product curve is decreasing, the slope of the total variable cost curve is:

Select one:

a.

increasing.

b.

decreasing.

c.

unchanged.

d.

at its minimum value.

The marginal cost curve intersects the total variable cost curve at:

Select one:

a.

its lowest point.

b.

its maximum.

c.

its endpoint.

d.

no point; the curves don't intersect.

Average total cost is the ratio of:

Select one:

a.

total cost to the marginal cost.

b.

total cost to the quantity of output.

c.

total cost to the amount of variable input.

d.

marginal cost to the amount of variable input.

If marginal cost is equal to average total cost, then:

Select one:

a.

average total cost is increasing.

b.

average total cost is at its maximum.

c.

average total cost is at its minimum.

d.

marginal cost is increasing.

Exhibit: Consumer Equilbrium 1 Units of Marginal Utility Units of Marginal Utility Good X of Good X Good Y of Good Y 20 12 16 10 12