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This Phone Center Uses Only Equipment and Workers to Provide

Question 51

Multiple Choice

This phone center uses only equipment and workers to provide service.  Output  (units)   Equipment  Workers  Total Cost  Marginal  Cost  Average  Variable Cost 0.5121143168181111012112\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (units) }\end{array} & \text { Equipment } & \text { Workers } & \text { Total Cost } & \begin{array} { c } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Variable Cost }\end{array} \\\hline 0.5 & 1 & 2 & & & \\\hline 1 & 1 & 4 & & & \\\hline 3 & 1 & 6 & & & \\\hline 8 & 1 & 8 & & & \\\hline 11 & 1 & 10 & & & \\\hline 12 & 1 & 12 & & & \\\hline\end{array}
Relative to costs when equipment cost $10,if the price of equipment increased to $20 and nothing else changed,


A) Total Cost would increase by $10 per unit of output.
B) Marginal Cost would increase by $20 divided by units of output.
C) Marginal Cost would not change.
D) Average Total cost would increase by $10 at each level of output.

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