True/False:
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Fixed and Variable Costs
In the long run
In the short-run capital is ___________ and labour is ___________ while in the long-run capital is ___________ and labour is ___________.
Which of the above curves is the marginal product curve?
In the short run, a firm can vary
Suppose Thor's hammer makers increases its output from 20 to 25 hammers. Its total cost increase from $500 to $750. What is the the company's marginal cost of producing a hammer?
In the short run
.
Practice Question
Tony sells furniture. He pays $1,200 month to rent a warehouse and has a 3 year lease. Each day he has one friend Jerry whom he pays $100 to help him sell the furniture. Jerry sells on 200 units of furniture a month.
What is the fixed cost for one month?
What is the variable cost per month?
Practice: Marginal Product
John makes 2 pizzas and then we add Eric and he makes 1 pizza. Each of them is paid $10.
When average total cost is falling, marginal cost must be
When marginal product is rising, which of the following is true?
Factors of Production
The factors of production are