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decreases at low outputs until it reaches its minimum value, then remains constant.

increases at low outputs until it reaches its maximum value, then remains constant.

is constantly decreasing, but as output increases it decreases by smaller and smaller amounts.

decreases at low outputs and increases at high outputs.

is constantly increasing, but as output increases it increases by smaller and smaller amounts.

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When would one expect to observe diminishing marginal product of labour?

None of the above.

when union workers are told to reduce their work effort in preparation for a new round of collective bargaining talks

when only new workers are trained in using the most productive capital

when workers are discouraged about the lack of help from other workers

when crowded office space reduces the productivity of new workers

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A firm's opportunity cost includes

the cost of using resources supplied by the firm's owner only.

economic profit.

the cost of using resources bought in the market and owned by the firm only.

only costs that are paid in cash or by cheque.

the cost of using resources bought in the market, owned by the firm, and supplied by the firm's owner.

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What does average total cost equal?

(fixed costs plus variable costs) divided by quantity produced

change in total costs divided by change in quantity produced

None of the above.

change in total costs divided by quantity produced

(fixed costs plus variable costs) divided by change in quantity produced

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