If we assume that a unit of capital will last indefinitely, the marginal rate of return on investment equals the marginal revenue product of capital divided by its marginal resource cost

The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?

A) $300 B) $400 C) $700 D) More information is needed to calculate the total fixed cost.

The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 80 units per day?

A) plant A B) plant B C) plant C D) plant D