Question

Table 13-5 Number of Workers Output 0 0 1 1,000 2 2,000 3 2,700 4 3,200 5 3,50...

Table 13-5

Number of
Workers

Output

0

0

1

1,000

2

2,000

3

2,700

4

3,200

5

3,500

6

3,600



Refer to Table 13-5. Assume that fixed costs are $500, and variable costs are $100 per worker. For this firm, what are the shapes of the production function and the total-cost curve?

Group of answer choices

Both the production function and total-cost curve are increasing at a decreasing rate.

The production function is increasing at an increasing rate, whereas the total-cost function is increasing at a decreasing rate.

Both the production function and total-cost curve are increasing at an increasing rate.

The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate.

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Answer #1
W Q FC VC TC
0 0 500 0 500
1 1000 500 100 600
2 2000 500 200 700
3 2700 500 300 800
4 3200 500 400 900
5 3500 500 500 1000
6 3600 500 600 1100

4000 3500 3000 2500 2000 1500 1000 500 о 1 2 4 6 7

ТC 1200 1000 800 600 TC 400 200 1000 2000 3000 4000

The production function is increasing at a decreasing rate, whereas the total-cost function is increasing at an increasing rate.

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