Business, 03.04.2020 22:58 MaTh8809

Telesca Inc., a manufacturer of telescopes, currently produces10,000 units per week. The firm's average cost of production has been declining so far. Labor is the only variable input used in production. The operations research team at this firm reports that the marginal cost of producing 10,000 telescopes is lower than both the average total cost and the average variable cost of production. The team believes that the average cost will decrease further if production is increased beyond 10,000 units. With the existing plant size and stock of other resources, the firm can produce a maximum of 13,000 telescopes per week.
Which of the following can most reasonably be inferred from the information given above?

A. Labor turnover increased during the previous month.
B. The marginal product of labor has been increasing throughout.
C. Demand for Telesca's products reached an all-time high this year.
D. The firm is planning to expand its product line to includeastrographs, which are designed to detect meteors and comets.
E. Telesca's after-sales service is rated higher than most other firms in the industry.

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Telesca Inc., a manufacturer of telescopes, currently produces10,000 units per week. The firm's aver...

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