31. Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitchen does the marginal product of labor exceed the average product of labor?A. at 40 gallonsB. at 70 gallonsC. all of the aboveD. at 10 gallons MCATCAVC10 20 30 40 50 60 70 80 90 100Quantity (gallons of ice cream per hour)Based on the above figure, for which of the following levelsof output at Ike's Ice Cream Kitchen does the marginalproduct of labor exceed the average product of labor?at 40 gallonsat 70 gallonsall of the aboveat 10 gallonsCost (dollars per gallon)

Given the cost curves, the relationship between cost and product curves is that when MC= AVC, Then…

31. Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitchen does the marginal product of labor exceed the average product of labor? A. at 40 gallons B. at 70 gallons C. all of the above D. at 10 gallons

31. Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitchen does the marginal product of labor exceed the average product of labor? A. at 40 gallons B. at 70 gallons C. all of the above D. at 10 gallons

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.8P

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Question

31. Based on the above figure, for which of the following levels of output at Ike's Ice Cream Kitchen does the marginal product of labor exceed the average product of labor?

A. at 40 gallons

B. at 70 gallons

C. all of the above

D. at 10 gallons

MC
ATC
AVC
10 20 30 40 50 60 70 80 90 100
Quantity (gallons of ice cream per hour)
Based on the above figure, for which of the following levels
of output at Ike's Ice Cream Kitchen does the marginal
product of labor exceed the average product of labor?
at 40 gallons
at 70 gallons
all of the above
at 10 gallons
Cost (dollars per gallon)

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