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jekas [21]
3 years ago
9

If the marginal product of labor falls whenever more labor is used, and labor is the only factor of production used by the firm,

than at every output level the firm's short-run average variable cost exceeds marginal cost. T/F
Business
1 answer:
valentina_108 [34]3 years ago
6 0

Answer:

False

Explanation:

If the marginal product of labor falls whenever more labor is used, and labor is the only factor of production used by the firm, than at every output level the firm's short-run average variable cost is less than marginal cost.

At the point of diminishing marginal productivity or returns, while marginal product is falling, marginal cost is rising because they have an inverse relationship.

Furthermore, at the point of diminishing returns, with marginal product falling with increasing output, marginal cost will rise above average cost because the cost of each additional unit of labor will be higher than the the previous, hence the average will be lower.

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6 0
4 years ago
MC Qu. 90 Locus Company has total fixed costs... Locus Company has total fixed costs of $117,000. Its product sells for $51 per
irina [24]

Answer:

The correct answer is 7,020 units.

Explanation:

According to the scenario, the computation of the given data are as follows:

Fixed cost = $117,000

Selling price = $51

Variable cost = $26

Pretax income to earn = 50% of fixed cost

So, Pretax income = 50% × $117,000 = $58,500

So, we can calculate the units required by using following formula:

Units required = (Total fixed costs + Pretax income) ÷ (Selling price - variable cost)

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= 7,020 units.

6 0
4 years ago
In a price​ system, A. relative prices change infrequently due to transaction costs. B. relative prices change constantly to ref
faust18 [17]

Answer:

B, relative prices change constantly to reflect changes in supply and demand.

Explanation:

Prices of goods and services in any market change regularly or constantly. This usually shows the changes in demand and supply of the goods or service.

When the demand for a good is high, prices change and there is an increase. When the demand for a good is low, prices also change and become low as there are not as much people willing to buy the good.

For supply, when the supply of a good or service is high, the price of the good or service is reduced as there is abundant supply of the good. But when the supply of the good is not as much the prices of the good changes as there is an increase.

I hope this helps.

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3 years ago
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Andrews [41]

Answer:

Explanation:

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3 years ago
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Westkost [7]

Answer:

ture

Explanation:

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