Asked by
Alegra Garcia
on Dec 08, 2024
Verified
Refer to Figure 10.2. This firmʹs marginal cost curve has shifted from MC1 to MC0. A likely explanation for this is that
A) the productivity of a variable input increased.
B) the price of a variable input increased.
C) the demand for the firmʹs product increased.
D) the supply of a variable input increased.
Marginal Cost Curve
The Marginal Cost Curve is a graphical representation showing the change in total cost that arises from producing one additional unit of a good or service.
Variable Input
An input in the production process that can be changed in the short run, such as labor and raw materials.
- Detail the influence that variations in marginal cost and marginal revenue product have on business actions in the realms of both product and labor markets.
- Appraise the implications of technology evolution and labor force changes on the marginal revenue product of labor and the hiring policies of firms.
Verified Answer
DP
Learning Objectives
- Detail the influence that variations in marginal cost and marginal revenue product have on business actions in the realms of both product and labor markets.
- Appraise the implications of technology evolution and labor force changes on the marginal revenue product of labor and the hiring policies of firms.
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