The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit. $$\begin{array} { c c }
\text { Units of } & \text { Units of } \
\text { Labor } & \text { Output } \
\hline 2 & 10 \
4 & 26 \
6 & 46 \
8 & 60 \
10 & 72 \
12 & 80
\end{array}$$ Based on the above,if the firm produces 60 units of output,what is average variable cost?
A)$5
B)$7.67
C)$20
D)$57.50
E)$2.67

Question

The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit. $$\begin{array} { c c } 
\text { Units of } & \text { Units of } \
\text { Labor } & \text { Output } \
\hline 2 & 10 \
4 & 26 \
6 & 46 \
8 & 60 \
10 & 72 \
12 & 80
\end{array}$$ Based on the above,if the firm produces 60 units of output,what is average variable cost?
A)$5
B)$7.67
C)$20
D)$57.50
E)$2.67

Quizplus · Accepted Answer

The Answer of The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit. $$\begin{array} { c c } 
\text { Units of } & \text { Units of } \
\text { Labor } & \text { Output } \
\hline 2 & 10 \
4 & 26 \
6 & 46 \
8 & 60 \
10 & 72 \
12 & 80
\end{array}$$ Based on the above,if the firm produces 60 units of output,what is average variable cost?
A)$5
B)$7.67
C)$20
D)$57.50
E)$2.67

The Capital Stock Is Fixed at 5 Units,the Price of Capital