. Joe's pizza hired a fourth worker, who made an additional ten pizzas per hour. Joe...

Joe's pizza hired a fourth worker, who made an additional ten pizzas per hour. Joe also discovered that the number of pizzas made per worker per hour was five when four workers were employed. We can conclude that Joe is experiencing:

	decreasing average product of labor.
	decreasing marginal product of labor.
	increasing marginal product of labor.
	increasing average product of labor.

	decreasing average product of labor.
	decreasing marginal product of labor.
	increasing marginal product of labor.
	increasing average product of labor.

Suppose a perfectly competitive firm faces the following situation: P = $8, output = 2,000, ATC = $6.50, and MC = $7. Which statement is an accurate description of the firm's situation?

	The firm incurs profits but is not maximizing its profits.
	The firm incurs losses but is not minimizing its losses.
	The firm is maximizing profits.
	The firm incurs losses and is minimizing its losses.

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Expert Solution

Rahul Sunny answered 9 months ago

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