Full explanations would be appreciated!25) In a short-run production process, the marginal cost is rising and the average variable cost is falling as output isincreased. Thus,A) marginal cost is below average fixed cost.C) average fixed cost is constant.B) marginal cost is below average variable cost.D) marginal cost is above average variable cost.26) A firm employs 100 workers at a wage rate of $10 per hour, and 50 units of capital at a rate of $21 per hour. Themarginal product of labor is 3, and the marginal product of capital is 5. The firmA) could reduce the cost of producing its current output level by employing more labor and less capital.B) could reduce the cost of producing its current output level by employing more capital and less labor.C) could increase its output at no extra cost by employing more capital and less labor.D) is producing its current output level at the minimum cost.E) Both B and D are true.

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25) In a short-run production process, the marginal cost is rising and the average variable cost is falling as output is increased. Thus, A) marginal cost is below average fixed cost. C) average fixed cost is constant. B) marginal cost is below average variable cost. D) marginal cost is above average variable cost.

25) In a short-run production process, the marginal cost is rising and the average variable cost is falling as output is increased. Thus, A) marginal cost is below average fixed cost. C) average fixed cost is constant. B) marginal cost is below average variable cost. D) marginal cost is above average variable cost.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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