Cost of Production

The following questions refer to the diagram below. The wage rate is assumed to be $12 per hour, the rental rate is assumed to be $6 per hour, and capital is assumed to be fixed in the short run at 10 hours.

-Refer to Cost of Production.The short-run average cost of producing 50 units of output per week is
A) $3 per unit.
B) $3.60 per unit.
C) $5 per unit.
D) $2.77 per unit.

Question

Cost of Production

The following questions refer to the diagram below. The wage rate is assumed to be $12 per hour, the rental rate is assumed to be $6 per hour, and capital is assumed to be fixed in the short run at 10 hours.

-Refer to Cost of Production.The short-run average cost of producing 50 units of output per week is
A) $3 per unit. 
B) $3.60 per unit. 
C) $5 per unit. 
D) $2.77 per unit.

Quizplus · Accepted Answer

The question only provides information about the short-run average cost of producing 50 units of output per week. The answer can be calculated using the given information about average variable cost and marginal cost in the short run. Without this information or any other relevant information, it is not possible to determine the answer with certainty. However, based on the given options, the closest answer is B, which is $3.60 per unit.

Cost of Production The Following Questions Refer to the Diagram Below. the Wage