Question

marginal cost is:

Group of answer choices

falling, then average total cost must also be rising.

rising, then average total cost must also be rising.

rising, then average total cost could be either falling or rising.

falling, then average total cost could be either falling or rising.

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Question 72.5 pts

If in the short run a firm's marginal product is positive, then:

Group of answer choices

the firm must be operating either in stage 1 or stage 2 of its production function.

its total product must be increasing.

its total product may be increasing or decreasing.

its average product must be increasing.

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Question 82.5 pts

A firm produces 500 units of output, where the marginal product of labor is 50 units and the marginal rate of technical substitution is 5. It follows that the marginal product of capital is

  

  

Group of answer choices

1/5.

5

10

25

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Question 92.5 pts

Answer the question on the basis of the following cost data:

OUTPUT TOTAL COST

0 $10

1 16

2 21

3 25

4 26

5 30

6 3

Answer 1

The marginal cost curve cuts the average total cost curve at its minimum point form the bottom.

The correct option is

rising, then average total cost must also be rising.

When the marginal product is positive, it implies the total product is rising.

The correct option is therefore,

its total product must be increasing.

Marginal rate of technical substitution is the marginal product of labor/ marginal product of capital.

5=50/marginal product of capital

marginal product of capital = 50/5 = 10.