The table above gives a firm's total product schedule. Suppose ...

[frankwu]

The table above gives a firm's total product schedule. Suppose labor is the only variable factor of production. The price of labor is 500 per week and total fixed costs are 600 per week. What is the marginal cost of producing the 90th unit?
 
  A) 10.00
  B) 24.92
  C) 31.61
  D) 50.00

Question 2

Andrew's utility of wealth schedule is given in the above table. Andrew is offered a job as a cook which pays 10,000. He is also offered a job as a server which will pay 5,000 if tips are poor and 15,000 if tips are good.
 
  There is a 50 percent chance that tips will be poor and a 50 percent chance that tips will be good. The expected income from the job as a cook is ________ and from the job as a server is ________. A) 10,000; 15,000
  B) 5,000; 5,000
  C) 10,000; 5,000
  D) 10,000; 10,000

[manuelcastillo]

Answer to Question 1

D

Answer to Question 2

D