Solved

One Baker Can Bake 15 Pies in a Day

Question 83

Multiple Choice

One baker can bake 15 pies in a day.Two bakers can bake 35 pies in a day.If the marginal revenue product of hiring the second baker is $200,then in a perfectly competitive product market


A) each pie sells for $10.
B) there are diminishing marginal returns.
C) there are decreasing economies of scale.
D) they are operating in a constant cost industry.
E) the marginal cost of production is $200.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents