Refer to the following:
The capital stock is fixed at 50 units, the price of capital is $30 per unit, and the price of labor is $25 per unit.
-If the firm produces 20 units of output, what is average fixed cost?
A) $1.50
B) $50
C) $150
D) $600
E) none of the above
Correct Answer:
Verified
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The capital stock
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The capital stock
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