The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
TABLE 7-3
-Refer to Table 7-3.The average total cost when producing 90 units of output is approximately
A)27 cents.
B)30 cents.
C)33 cents.
D)89 cents.
E)$26.67.

Question

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
  TABLE 7-3
-Refer to Table 7-3.The average total cost when producing 90 units of output is approximately
A)27 cents. 
B)30 cents. 
C)33 cents. 
D)89 cents. 
E)$26.67.

Quizplus · Accepted Answer

The Answer of The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
  TABLE 7-3
-Refer to Table 7-3.The average total cost when producing 90 units of output is approximately
A)27 cents. 
B)30 cents. 
C)33 cents. 
D)89 cents. 
E)$26.67.

The Following Data Show the Total Output for a Firm