May I know the Correct Answer:1. In a the short product process a(an)marginal cost is negative and decreasesmarginal product of labor explains whySelect the correct response:o None of the aboveo Increasing; does not changeo Diminishing; decreaseso Diminishing, rises - WRONG ANSWERo Zero; fallso Constant; rises2. Tom borrowed Php500,000 from her parents to open a spa. He pays her parents a 5%yearly return on the money they lent her. Her other yearly fixed costs equal Php150,000and his variable costs equal Php200,000. In her first year, Tom had a total of 2,000customers at a price of Php300/customer. Tom's total fixed cost is675000 - WRONG ANS3. A firm uses labor and capital to produce an output. The hourly cost of labor is 10 and thehourly cost of capital is 50. Which of the following combinations of labor and capital hoursof use represent points on the firm's 100,000 isocost line?Select the correct response:O (1,000-2,000)o (2,000-1,000)o (1,000-1,000)o (1,000-1,800) – WRONG ANSWERo (2,000-2,000)o NONE OF THE ABOVE4. Given the information that follows: Sales - 750,000, explicit costs 450,000, return you couldhave earned by investing your money elsewhere = 50,000, wages that you and your familymembers could have earned doing the same work for another firm 70,000. TheAccounting cost is equal to30000 – WRONG ANS

Since you have asked multiple question, we will solve the first question for you. If you want any…

1. In a the short product process a(an) _marginal product of labor explains why marginal cost is negative and decreases. Select the correct response: o None of the above o Increasing; does not change o Diminishing; decreases o Diminishing, rises - WRONG ANSWER o Zero; falls o Constant; rises

1. In a the short product process a(an) _marginal product of labor explains why marginal cost is negative and decreases. Select the correct response: o None of the above o Increasing; does not change o Diminishing; decreases o Diminishing, rises - WRONG ANSWER o Zero; falls o Constant; rises

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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Question

May I know the Correct Answer:
1. In a the short product process a(an)
marginal cost is negative and decreases
marginal product of labor explains why
Select the correct response:
o None of the above
o Increasing; does not change
o Diminishing; decreases
o Diminishing, rises - WRONG ANSWER
o Zero; falls
o Constant; rises
2. Tom borrowed Php500,000 from her parents to open a spa. He pays her parents a 5%
yearly return on the money they lent her. Her other yearly fixed costs equal Php150,000
and his variable costs equal Php200,000. In her first year, Tom had a total of 2,000
customers at a price of Php300/customer. Tom's total fixed cost is
675000 - WRONG ANS
3. A firm uses labor and capital to produce an output. The hourly cost of labor is 10 and the
hourly cost of capital is 50. Which of the following combinations of labor and capital hours
of use represent points on the firm's 100,000 isocost line?
Select the correct response:
O (1,000-2,000)
o (2,000-1,000)
o (1,000-1,000)
o (1,000-1,800) – WRONG ANSWER
o (2,000-2,000)
o NONE OF THE ABOVE
4. Given the information that follows: Sales - 750,000, explicit costs 450,000, return you could
have earned by investing your money elsewhere = 50,000, wages that you and your family
members could have earned doing the same work for another firm 70,000. The
Accounting cost is equal to
30000 – WRONG ANS

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