Question: 8 0 Suppose Ralph own a chicken processing plant with the total cost function shown in the accompanying table. What is Ralph's fixed cost? Ralph's
Suppose Ralph own a chicken processing plant with the total
cost function shown in the accompanying table.
What is Ralph's fixed cost?
Ralph's fixed cost: $
tabletableQuantity ofChickensTotal Cost $
Ralph pays his workers $ each, and labor is the only variable cost. At a quantity of chickens, how many workers does he hire?
number of workers Ralph hires:
Why does total cost increase faster as output increases?
There are diminishing returns to labor.
The fixed cost increases.
The variable cost increases.
There are increasing returns to scale.
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