Author Question: The above figure shows the costs at Barney's Bagel Bakery. For which of the following levels of ... (Read 115 times)

imowrer · **on:** Jun 29, 2018

The above figure shows the costs at Barney's Bagel Bakery. For which of the following levels of output does the average product of labor exceed the marginal product of labor?

A) at 1000 bagels daily
B) at 2000 bagels daily
C) at 3000 bagels daily
D) all of the above

Question 2

In the figure above, S is the supply curve and D is the demand curve in the unregulated, competitive market for gasoline in Motorland. The external cost of gasoline is constant at 1.50 per gallon.

The unregulated, competitive market for gasoline in Motorland A) produces the efficient quantity of gasoline.
B) overproduces by 0.2 million gallons of gasoline a month.
C) underproduces by 0.1 million gallons of gasoline a month.
D) overproduces by 0.1 million gallons of gasoline a month.