When a firm is producing at the level of output that maximizes profit, which of the following true? (1 point)
A.• Marginal cost is negative.
B.• Marginal revenue is positive.
C.© Marginal revenue is greater than marginal cost.
D.O Marginal revenue is equal to marginal cost.
A restaurant produces 250 meals per day with five employees. After hiring an additional employee, the restaurant now produces 260 meals per day. Calculate the marginal product of labor. (1 point)
A.10
B. 5/3
C.260
D. 2
If the cost of labor is the only variable cost that the firm faces, what is the cost incurred by the business for each additional unit of labor?
A.$80
B.$10
C.$50
D.$16
What is the marginal cost of producing the 45th unit of output?
A.$52
B.$156
C.$5.40
D.$154
The correct answers are:
- When a firm is producing at the level of output that maximizes profit, the answer is D. Marginal revenue is equal to marginal cost.
- To calculate the marginal product of labor, we divide the change in output (10 meals) by the change in labor (1 employee). Therefore, the answer is A. 10.
- If the cost of labor is the only variable cost, then the cost incurred by the business for each additional unit of labor is equal to the cost of labor. Therefore, the answer is D. $16.
- To determine the marginal cost of producing the 45th unit of output, we need more information. Without that information, we cannot answer the question.