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This Phone Center Uses Only Equipment and Workers to Provide

Question 52

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}
For this firm,Marginal Cost


A) equals Average Variable Cost at Average Variable Cost's minimum point.
B) equals Average Total Cost at Average Total Cost's maximum point.
C) is always greater than Average Variable Cost.
D) is always less than Average Variable Cost.

Correct Answer:

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