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Your firm purchases inputs on competitive markets. To increase production by 1 unit, you need 1 kilogram of steel, 2 kilowatt-hours of electricity, and some
Your firm purchases inputs on competitive markets. To increase production by 1 unit, you need 1 kilogram of steel, 2 kilowatt-hours of electricity, and some labour. Your firm produces 200 units with 10 workers, 211 units with 11 workers and 220 units with 12 workers. When going from 11 to 12 workers: O MC is increasing. AVC and ATC may be increasing or decreasing. O MC and AVC are increasing. ATC may be increasing or decreasing. MC and ATC are increasing. ATC may be increasing or decreasing. O MC is increasing. AVC is decreasing. ATC may be increasing or decreasing. O MC is increasing. Both AVC and ATC are decreasing. O None of the above
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