Author Question: An apple orchard currently hires 10 workers. The owner estimates that hiring an additional worker ... (Read 139 times)

Pea0909berry · **on:** Jun 30, 2018

An apple orchard currently hires 10 workers. The owner estimates that hiring an additional worker would increase apple yields by 20 bushels per day. The price of apples is 15 per bushel. The owner should hire the extra worker if the wage rate is no greater than:
a. 50 per day.
b. 150 per day.
c. 200 per day.
d. 300 per day.

Question 2

Economies of scale can be caused by all of the following except:
a. price discounts for large scale purchases.
b. labor specialization.
c. use of more productive equipment.
d. increases in the firm's average total cost.
e. more cost-efficient methods of marketing.