Assuming that the labour is the only variable factor of production for banana cakes, and each worker making banana cakes gets paid $21.00 per day. Refer to the table below and determine which statement is correct? Number of workers 0 3 Total banana cakes 0 60 produced daily 1 10 2 20 4 80 5 97 Select one: O a. It is certain that the Marginal Cost Curve is falling when the 97th banana cake is produced daily. O b. It is uncertain that the Total Cost is rising when the 97th banana cake is produced daily. O c. It is certain that the Total Fixed Cost is rising when the 97th banana cake is produced daily. O d. It is certain that the Average Total Cost is rising when the 97th banana cake is produced daily.
Assuming that the labour is the only variable factor of production for banana cakes, and each worker making banana cakes gets paid $21.00 per day. Refer to the table below and determine which statement is correct? Number of workers 0 3 Total banana cakes 0 60 produced daily 1 10 2 20 4 80 5 97 Select one: O a. It is certain that the Marginal Cost Curve is falling when the 97th banana cake is produced daily. O b. It is uncertain that the Total Cost is rising when the 97th banana cake is produced daily. O c. It is certain that the Total Fixed Cost is rising when the 97th banana cake is produced daily. O d. It is certain that the Average Total Cost is rising when the 97th banana cake is produced daily.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Assuming that the labour is the only variable factor of production for banana cakes, and each worker making banana cakes gets paid $21.00 per day.
Refer to the table below and determine which statement is correct?
Number of workers
0
3
60
Total banana cakes
produced daily
0
1
10
2
20
4
80
5
97
Select one:
O a. It is certain that the Marginal Cost Curve is falling when the 97th banana cake is produced daily.
O b. It is uncertain that the Total Cost is rising when the 97th banana cake is produced daily.
O c. It is certain that the Total Fixed Cost is rising when the 97th banana cake is produced daily.
O d. It is certain that the Average Total Cost is rising when the 97th banana cake is produced daily.
Transcribed Image Text:The total cost of making 100 hamburgers is $1000. The marginal cost of 101st hamburger is only $6. Which of the following statements must be
correct?
Select one:
O a. The marginal cost of the 100th hamburger is 10.
O b. The average variable cost of producing 101 hamburgers is $ 9.9.
O c. The average total cost of producing 101 hamburgers is $9.96.
Od. The average total cost is constant at $10.
K
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