Suppose a sandwich shop currently employs four workers and the shop produces 12 sandwiches an hour.A fifth worker gets hired and the shop now produces 15 sandwiches per hour.Which of the following is true?
A) The marginal product of the fifth worker is three sandwiches.
B) The total product of the sandwich shop is now 27 sandwiches.
C) Diminishing marginal product has set in.
D) All of these are true.
Correct Answer:
Verified
Q106: Diminishing marginal product:
A)causes the variable cost curve
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Q108: Average product measures:
A) the quantity of output
Q109: When marginal product _ average product,average product
Q110: Assume a company is at a point
Q112: In general,the cost of an input:
A) decreases
Q113: The total cost curve:
A) is the sum
Q114: The fixed cost curve:
A) is steep when
Q129: Average variable costs:
A)decrease when marginal product rises
Q139: Average total cost:
A)decreases when output levels are
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