Consider a basket-producing firm with fixed capital.If the firm can produce 24 baskets per day with 3 workers and then increases production to 36 baskets per day with 4 workers,then which of the following statements is definitely true?
A) The firm has passed the point of diminishing marginal productivity.
B) The marginal productivity of the fourth worker is 9.
C) The firm has passed the point of diminishing average productivity.
D) With 4 workers,the average product is greater than the marginal product.
E) With 4 workers,the marginal product is greater than the average product.
Correct Answer:
Verified
Q74: Q75: The following data show the total output Q76: The following data show the total output Q77: In the short run,the firm's product curves Q78: Consider a basket-producing firm with fixed capital.If Q80: Suppose that when a firm hires one Q81: The law of diminishing returns states that Q82: The point of diminishing marginal productivity is Q83: Consider a basket-producing firm with fixed capital.If Q84: Suppose sport-fishermen on the Campbell River in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents