Refer to Figure 8.1. At the profit-maximizing level of output, ...

[james9437]

Refer to Figure 8.1. At the profit-maximizing level of output,
 
  A) AVC is minimized.
  B) ATC is minimized.
  C) MC is minimized.
  D) total cost is minimized.
  E) no costs are minimized.

Question 2

Joe owns a coffee house and produces coffee drinks under the production function q = 5KL where q is the number of cups generated per hour, K is the number of coffee machines (capital), and L is the number of employees hired per hour (labor).
 
  What is the average product of labor? A) AP = 5
  B) AP = 5K
  C) AP = 5L
  D) AP = 5K/L

[djofnc]

Answer to Question 1

E

Answer to Question 2

B

[james9437]

TYSM

[scottmt]

Excellent