Author Question: Which of the following statements is true? If the marginal product of labor diminishes, a. average ... (Read 49 times)

krzymel · **on:** Jun 30, 2018

Which of the following statements is true? If the marginal product of labor diminishes,
a. average fixed cost rises
b. average variable cost is constant
c. marginal cost rises
d. average total cost must rise
e. total cost rises at a diminishing rate

Question 2

Suppose Guild produces 5,000 guitars per year. Its average total cost is 90, and its fixed cost is 250,000 . What is its variable cost?
a. 250,000
b. 450,000
c. 25,000
d. 56,000
e. 200,000