Use the following figure, showing a firm's marginal and product curves for labor, the only variable input, to answer the next three questions. Labor is the only variable input. The wage rate of labor is $200 and the fixed cost is $6,000.
-When 40 workers are hired,
a. output is ______ units.
b. AVC is $______ and MC is $______ at this level of output.
c. AVC is ______ (increasing, decreasing) and MC is ______ (increasing, decreasing) at this level of output.

Question

Use the following figure, showing a firm's marginal and product curves for labor, the only variable input, to answer the next three questions. Labor is the only variable input. The wage rate of labor is $200 and the fixed cost is $6,000. 
-When 40 workers are hired,
a. output is ______ units.
b. AVC is $______ and MC is $______ at this level of output.
c. AVC is ______ (increasing, decreasing) and MC is ______ (increasing, decreasing) at this level of output.

Quizplus · Accepted Answer

The Answer of Use the following figure, showing a firm's marginal and product curves for labor, the only variable input, to answer the next three questions. Labor is the only variable input. The wage rate of labor is $200 and the fixed cost is $6,000. 
-When 40 workers are hired,
a. output is ______ units.
b. AVC is $______ and MC is $______ at this level of output.
c. AVC is ______ (increasing, decreasing) and MC is ______ (increasing, decreasing) at this level of output.

Use the Following Figure, Showing a Firm's Marginal and Product