-The above table shows the total product schedule for the campus book store. When the book store is selling 60 books per hour it is certain that
A) marginal costs are increasing, but average variable costs are still decreasing.
B) both marginal and average costs are decreasing.
C) both marginal and average costs are increasing.
D) hiring one more employee per hour will lead to fewer books being sold.

Question

-The above table shows the total product schedule for the campus book store. When the book store is selling 60 books per hour it is certain that
A) marginal costs are increasing, but average variable costs are still decreasing. 
B) both marginal and average costs are decreasing. 
C) both marginal and average costs are increasing. 
D) hiring one more employee per hour will lead to fewer books being sold.

Quizplus · Accepted Answer

When the bookstore is selling 60 books per hour, marginal costs are likely increasing due to diminishing returns, but average variable costs can still be decreasing if the increase in output is spreading the fixed costs over more units.

-The Above Table Shows the Total Product Schedule for the Campus