2025 First Fall BADM 7200 Exam -3 with Complete Solutions-Louisiana State University

2025 First Fall BADM 7200 Exam #3 with
Complete Solutions-Louisiana State
University
Started on Saturday, October 8, 2025, 8:33 AM
State Finished
Completed on Saturday, October 8, 2025, 10:57 AM
Time taken 2 hours 23 mins
Points 43.83/70.00
Grade 62.62 out of 100.00




Question 1
Correct 5.00 points out of 5.00

How would each of the following affect the firm's marginal cost (MC), average variable cost
(AVC), and average total cost (ATC) curves?

The rent
that the
firm pays
on the
building no change MC, no change AVC, decreases ATC
that it
leases
decrease
s.
The
governme
nt
imposes a no change MC, no change AVC, increases ATC
fixed
amount of
tax.

An
increase increase MC, increase AVC, increase, ATC
in wages.
A
decrease decrease MC, decrease AVC, decrease, ATC
in
material
costs.


The correct answer is:
The rent that the firm pays on the building that it leases decreases. → no change MC, no change AVC,
decreases ATC, The government imposes a fixed amount of tax. → no change MC, no change AVC,
increases ATC,
An increase in wages. → increase MC, increase AVC, increase, ATC,
A decrease in material costs. → decrease MC, decrease AVC, decrease, ATC

, Question 2
Correct 5.00 points out of 5.00

Suppose a firm faces the following average and marginal

products of labor: APL = 200 + 5L - 0.08L2
MPL = 200 + 10L - 0.24L2

At what value of labor does Stage III of production begin?


Answer: 56.43


The correct answer is: 56.43