The law of diminishing returns _____ to companies like Lincoln Electric because Lincoln is _____________ labor productivity and __________ labor costs with its unique employment situation.

1. Does not apply; maximizing; minimizing
2. Applies; maximizing; minimizing
3. Does not apply; minimizing; maximizing
4. Applies; attempting to maximize; eliminate
5. 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?

1. $217,036.66 per week
2. $1,014.19 per week
3. $265.65 per machine
4. $612.47 per machine