Question
The law of diminishing returns _____ to companies like Lincoln Electric because Lincoln is _____________ labor productivity and __________ labor costs with its unique employment
The law of diminishing returns _____ to companies like Lincoln Electric because Lincoln is _____________ labor productivity and __________ labor costs with its unique employment situation.
- Does not apply; maximizing; minimizing
- Applies; maximizing; minimizing
- Does not apply; minimizing; maximizing
- Applies; attempting to maximize; eliminate
- None of the above
SupposeLincoln Electricopens a newplantinCanada.Lincolnhires214peoplein thisplantand payseach workeran average piece work wage of $1,014.19per week. SupposeLincoln'sworkerscombinedcanproduce817welding machinesper week. What is the average product of labor for thisplant? What is the total variable cost per week?
a. 817.15; $620.55
b. 3.817; $217,036.66
c. 16.119; $4.88 per machine
d. 5.004; cannot be determined with information provided
e. 817; $828,593.23
What is thisLincoln'sAVERAGE variable cost of labor?
- $217,036.66 per week
- $1,014.19 per week
- $265.65 per machine
- $612.47 per machine
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
