Table 13-9 Number of Workers Output Fixed Cost Variable Cost 0 0 $30 $0 1 100 $3
ID: 1165342 • Letter: T
Question
Table 13-9
Number of
Workers
Output
Fixed
Cost
Variable
Cost
0
0
$30
$0
1
100
$30
$15
2
180
$30
$30
3
240
$30
$45
4
280
$30
$60
5
300
$30
$75
Refer to Table 13-9. For the firm whose production function and costs are specified in the table, its total-cost curve is
constant.
increasing at a decreasing rate.
increasing at an increasing rate.
unknown because there is no relationship between a firm’s production function and its total-cost curve.
Table 13-9
Number of
Workers
Output
Fixed
Cost
Variable
Cost
0
0
$30
$0
1
100
$30
$15
2
180
$30
$30
3
240
$30
$45
4
280
$30
$60
5
300
$30
$75
Explanation / Answer
B. Increasing at decreasing rate.
Total cost is sum of fixed and variable cost. It is increasing at a constant rate of $15 per unit of output. But output is increasing at a diminishing rate. Initially with $15 increase in variable cost, outout increases by 80 units but later output increases by 40 units , 20 units.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.