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Question 10 0.5 pts In Table B, assume all workers get paid the same wage rate of w = $120. Assume that TFC =
Question 10 0.5 pts In Table B, assume all workers get paid the same wage rate of w = $120. Assume that TFC = 400). Which of the following is true? Hint: You can use this wage rate information to fill in the cost columns (MC, TC, TVC, AVC). The costs are found using the costs associated with hiring more workers. Remember also that MC = w/MPL. The marginal cost of sandwiches made by the 6th worker is $1.50 O The sandwich with the lowest marginal cost was made by worker #5 O The marginal cost of sandwiches increases when L increases from 3 to 4 The marginal cost of sandwiches decreases when L increases from 7 to 8 Question 11 0.5 pts In Table B, assume all workers get paid the same wage rate of w = $120. Assume that TFC = 400. Consider average variable cost (AVC). Which of the following is true? The AVC of sandwiches increases when L increases from 3 to 4 The AVC of sandwiches is minimized when L = 3 The AVC of sandwiches is $4 when 7 workers are employed The AVC of sandwiches is $5 when 6 workers are employed
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