Suppose that with two fro-yo machines, 12 workers produce eight quarts of fro-yo. If the marginal product of the thirteenth worker is two quarts, then
a. thirteen workers produce ten quarts
b. thirteen workers produce two quarts
c. the thirteenth worker alone produces ten quarts
d. the law of diminishing returns cannot be operating in this example
e. diminishing returns must begin with the thirteenth worker
A
You might also like to view...
Suppose a cost function is TC = Aq3 + bq2 + cq + d. Then the total fixed cost is
a. Aq2 + bq + cq +d/q b. Aq2 + bq + c c. Aq3 + bq2 + cq d. d
Which of the following does not increase a McDonald's franchisee's financial stake in the success of the operation?
a. Successful owners may get additional restaurants b. The franchise is valid for 20 years and renewable after that c. The franchisee can safely ignore the company's standards of quality, pricing, cleanliness, hours of operation, and so on d. The franchisee must make highly specific investments of money and time e. The franchisee must have "non-borrowed personal resources" of at least $200,000 in cash