Table 13-5

-Refer to Table 13-5.Assume that fixed costs are $500,and variable costs are $100 per worker.For this firm,what are the shapes of the production function and the total-cost curve?
A) Both the production function and total-cost curve are increasing at an increasing rate.
B) Both the production function and total-cost curve are increasing at a decreasing rate.
C) The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate.
D) The production function is increasing at an increasing rate, whereas the total-cost function is increasing at a decreasing rate.

Question

Table 13-5
 
-Refer to Table 13-5.Assume that fixed costs are $500,and variable costs are $100 per worker.For this firm,what are the shapes of the production function and the total-cost curve?
A) Both the production function and total-cost curve are increasing at an increasing rate. 
B) Both the production function and total-cost curve are increasing at a decreasing rate. 
C) The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate. 
D) The production function is increasing at an increasing rate, whereas the total-cost function is increasing at a decreasing rate.

Quizplus · Accepted Answer

The production function typically increases at a decreasing rate due to diminishing marginal returns, while the total-cost curve increases at an increasing rate as more workers are hired, leading to higher variable costs.

Table 13-5 -Refer to Table 13-5.Assume That Fixed Costs Are $500,and Variable