Big Truck Hauling Company uses 5 units of capital at $1,000 per unit and employs 10 employees at a cost of $400 each. What is the company’s fixed cost?

The table shows the weekly relationship between output and number of workers for a factory with a fixed size of plant. What is the marginal product of labor between 2 and 3 workers? Number of Workers Output 0    0 1   50 2 110 3 300 4 450 5 590 6 665 7 700 8 725 9 710 10  705

Managers can increase the effective demand for their products by

Based on the table, if the wage rate is $500 and the price of output is $5, how many workers should the firm hire? Number of Workers Output 0    0 1   50 2 110 3 300 4 450 5 590 6 665 7 700 8 725 9 710 10  705

What do we need to do to the reorder point if demand becomes more volatile?

At its current output level, Pretty Flowers Florist has average fixed costs equal to $5.40 and average variable costs equal to $3.20. What is Pretty Flowers Florist’s average total cost at their current output level?

Which of the following institutions may result in hold-up?

All answers must come from information learned from class materials. 

Capital K Labor L Output Q 4 0 0 4 1 15 4 2 32 4 3 52 4 4 70 4 5 85 4 6 98 The table provides output levels as Paper Products R Us hires more workers. Their capital is currently fixed at 4 units and each unit costs $100. Each worker costs $50.Refer to the table above. What is the average total cost of producing 85 units of output?

If a firm’s long-run average cost is $4 and when output increases long-run average cost decreases to $3, the firm is experiencing ________.