Total costs increase from 1500 to 1800 when a firm increases output from 40 to 50 units. Which of the following are true?
a. AC rise by 1.50
b. AC rise by 1.00
c. AC fall by 1.50
d. AC fall by 1.00
Question 2
A commission-paid shoe salesman must decide whether to work hard or shirk. Working hard would increase the probability of a sale from 20 to 40 but would cost him 20 . If the salesman is paid a 40 commission per sale and a 20 fixed salary and is under monitoring where he would get fired if he doesn't work hard, what would he choose to do?
a. Work hard
b. Shirk
c. Walk away from the job
d. None of the above
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