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 producing 132 units of output is approximately
A)24 cents.
B)30 cents.
C)45 cents.
D)68 cents.
E)89 cents.

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 producing 132 units of output is approximately
A)24 cents. 
B)30 cents. 
C)45 cents. 
D)68 cents. 
E)89 cents.

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 producing 132 units of output is approximately
A)24 cents. 
B)30 cents. 
C)45 cents. 
D)68 cents. 
E)89 cents.

The Following Data Show the Total Output for a Firm