Refer to the following:

A firm produces 4,000 units of output using 500 workers. Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000.

-What is average variable cost?
A) $0.32
B) $16
C) $20
D) $1,280
E) none of the above

Question

Refer to the following:

A firm produces 4,000 units of output using 500 workers.  Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000.

-What is average variable cost?
A) $0.32
B) $16
C) $20
D) $1,280
E) none of the above

Quizplus · Accepted Answer

The Answer of Refer to the following:

A firm produces 4,000 units of output using 500 workers.  Marginal cost is $10, the wage rate is $160, and total fixed cost is $100,000.

-What is average variable cost?
A) $0.32
B) $16
C) $20
D) $1,280
E) none of the above

Refer to the Following