Question

QUESTION 1

A firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust the amount of capital it is using, but it can adjust the size of its workforce.

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If the cost of renting capital increases, which of the following curves will be affected? (Check all answers that apply).

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A) Average fixed cost

B) Marginal cost

C) Average total cost

D) Average variable cost

QUESTION 2

If the cost of hiring workers increases, which of the following curves will be affected? (Check all answers that apply).

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A) Average total cost

B) Average variable cost

C)Average fixed cost

D) Marginal cost

Answer 1

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