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 variable cost when this firm is producing 10 units of output is
A)$0.10.
B)$0.50.
C)$0.60.
D)$1.00.
E)$6.00.

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 variable cost when this firm is producing 10 units of output is
A)$0.10. 
B)$0.50. 
C)$0.60. 
D)$1.00. 
E)$6.00.

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 variable cost when this firm is producing 10 units of output is
A)$0.10. 
B)$0.50. 
C)$0.60. 
D)$1.00. 
E)$6.00.

The Following Data Show the Total Output for a Firm