Question

8 workers altogether will produce 80 units of output, hiring the 9th will increase total production to 99. The marginal product of the 9th worker is

19

90

We cannot tell

80

2) cost of resources you do not own (you have to pay to obtain them) is called

Group of answer choices

Economic profit

Implicit Cost

Total Cost

Explicit Cost

3)

he curve(s) that are U-Shaped is (are)

Group of answer choices

Average total Cost

Average variable cost

Average Fixed cost

Answer 1

1. 19

Marginal product of (n) = Total product of (n) – Total product of (n-1)

Marginal product of 9^th worker = 99 – 80

Marginal product of 9^th worker = 19

2. Explicit cost

Explicit cost is incurred when the firm pays for the usage of factors of production. When payment is made to resources like land and labor, it is called explicit cost. Because these resources are obtained only after the payment.

(Whereas implicit cost is the opportunity cost of resources which is already owned by the firm)

3. Average total cost and average variable cost

The ATC curve is U-shaped because ATC is the sum of AFC and AVC. AFC curve slopes downwards and it is a rectangular hyperbola. The AVC curve is U-shaped because of decreasing marginal returns.