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please answer in an A, B, C, D format. Thank you.

3120 per day. The effect on couts will be QUESTION 1 Suppose that the price of labor, the only variable input used in product
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Since labor is the variable input, therefore it would lead to a change in the marginal cost. An increase in price would lead to a parallel shift in the marginal cost. Option C is correct.

Peanut is used as an ingredient in peanut butter. Therefore, if the price of peanut rises then the marginal cost of producing peanut rises. Option B is correct.

Sunk cost is the cost that has already been incurred and cannot be recovered. It does not vary with the level of output. Therefore option A is correct.

Variable costs are the costs that change as the quantity of output produced changes. Therefore option D is correct.

If marginal cost is more than marginal revenue, then the firms should reduce their production so that marginal cost becomes lesser and MR=MC. This would increase their profit. Therefore option C is correct.

Economists believe that the aim of the firm is to maximise profit. Option D is correct.

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