Short Answer
Assume capital is fixed at 4 units and the wage rate of labor is $600.
a. As labor is increased from 1 to 2 units, AVC ______ (rises, falls) from $______to $______.
b. As labor is increased from 1 to 2 units, MC ______ (rises, falls) from $______ to $______.
c. As labor is increased from 3 to 4 units, AVC ______ (rises, falls) from $______ to $______.
d. As labor is increased from 3 to 4 units, MC ______ (rises, falls) from $______ to $______.
Correct Answer:
Verified
a. falls; $15; $12
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Correct Answer:
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b...
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