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QUESTION 1 Output per month A B C D E Labor per month Refer to the above figure. Which of the following statements is false? O A. At point D the average product of labor is zero. OB. At point A the marginal product of labor is increasing. OC. At point C the marginal product of labor is smaller than average product of labor. D. At point E the marginal product of labor is negative.

QUESTION 1 Output per month A B C D E Labor per month Refer to the above figure. Which of the following statements is false? O A. At point D the average product of labor is zero. OB. At point A the marginal product of labor is increasing. OC. At point C the marginal product of labor is smaller than average product of labor. D. At point E the marginal product of labor is negative.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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QUESTION 1 Output per month A OA. MC = $72 B. MC = $8 B OC. MP = $4 OD. MC = $24 C D E Refer to the above figure. Which of the following statements is false? O A. At point D the average product of labor is zero. OB. At point A the marginal product of labor is increasing. OC. At point C the marginal product of labor is smaller than average product of labor. D. At point E the marginal product of labor is negative. Labor per month QUESTION 2 You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the number of workers that you employ per hour. Two employees can generate an average product of 7 cars per person in each hour, and five employees can generate an average product of 3 cars per person in each hour. If the wage is $24 per hour, what is the marginal cost as you increase the labor from Two to five employees?
Transcribed Image Text:QUESTION 1 Output per month A OA. MC = $72 B. MC = $8 B OC. MP = $4 OD. MC = $24 C D E Refer to the above figure. Which of the following statements is false? O A. At point D the average product of labor is zero. OB. At point A the marginal product of labor is increasing. OC. At point C the marginal product of labor is smaller than average product of labor. D. At point E the marginal product of labor is negative. Labor per month QUESTION 2 You operate a car detailing business with a fixed amount of machinery (capital), but you have recently altered the number of workers that you employ per hour. Two employees can generate an average product of 7 cars per person in each hour, and five employees can generate an average product of 3 cars per person in each hour. If the wage is $24 per hour, what is the marginal cost as you increase the labor from Two to five employees?
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