Ch11_12_part2_Practice_Problems

100 d 150 26 refer to table 3 what is the value

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Unformatted text preview: easing at a decreasing rate, whereas the total- cost function is increasing at an increasing rate. d. The production function is increasing at an increasing rate, whereas the total- cost function is increasing at a decreasing rate. 20. Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when the firm hires 4 workers, the firm produces 50 units of output. If the fixed cost of production is $4, the variable cost per unit of labor is $20, and the marginal product of labor for the fifth unit of labor is 2, what is the average total cost of production when the firm hires 5 workers? a. $2.00 b. $20.00 c. $20....
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This document was uploaded on 04/06/2014 for the course ECON 1 at UCLA.

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