The accompanying table describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made) , and each worker is paid $10 per hour.
Average variable cost is minimized when output is approximately:
A) 6 units.
B) 16 units.
C) 22 units.
D) 24 units.
Correct Answer:
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