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Scenario: a Car Repair Shop Hires Workers and Pays Them

Question 85

Multiple Choice

Scenario: A car repair shop hires workers and pays them the federal minimum wage of $7.25. The following table shows the marginal returns to each worker in terms of number of cars repaired.
Scenario: A car repair shop hires workers and pays them the federal minimum wage of $7.25. The following table shows the marginal returns to each worker in terms of number of cars repaired.    -Refer to the scenario above.In addition,suppose the fixed cost of operating this shop is $1,000 per day.If we calculate the marginal cost of this firm,we expect it to be ________. A)  increasing B)  decreasing C)  first decreasing, and then increasing D)  first decreasing, and then flat
-Refer to the scenario above.In addition,suppose the fixed cost of operating this shop is $1,000 per day.If we calculate the marginal cost of this firm,we expect it to be ________.


A) increasing
B) decreasing
C) first decreasing, and then increasing
D) first decreasing, and then flat

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