Question

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 production, increases from 1100 a parallel shift in the total cost ourve parallels in the feed cost curve a parallel hit in the marginal cost curve a shift in total cost byderent amounts for different quantes QUESTION 2 Your company produces peanut butter. An increase in the price of peanuts will cause the firm to lower its output because faxed costs will rise marginal cost will be the price of peanut butter will marginal revenue will does not rywithe level of our increases the firm's production increases measures the value of self owned resources can no longer be avoided QUESTION 4 The term variable costs refers to prices of inputs that vary a lot increases in the prices of any input costs that vary with the type of final product being produced costs that way with the quantity of output being produced QUESTIONS afirm's marginal cost exceeds its marginal revenue, then profit is negative the frm should shut down cuting back production will increase profits the firm should reduce its per un cost by increasing its outpu QUESTIONG Economists assume that the goal of the firm Increase profit maximine output maximize pront

Answer 1

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.