A firm is producing 15 units of output and employing 3 workers at a wage rate of

Question

A firm is producing 15 units of output and employing 3 workers at a wage rate of $ I5. The marginal product of a 4th $5 worker is 3 units of output. What is the firm's marginal cost if it now produces 18 units? $15 $20 $3 When marginal cost is decreasing, variable costs are decreasing. decreasing at an increasing rate. O decreasing at a decreasing rate. increasing at a decreasing rate. Average variable cost equals-.w MC w AP w MP w VC Marginal cost is equal to the wage divided by the marginal product of labor. true false

Explanation / Answer

1. $15

2. DECREASING

3. w/VC

4. FALSE

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.