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.At what level of output does average total cost reach a minimum?
A)30
B)90
C)132
D)150
E)ATC declines continuously over the range of output shown.

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.At what level of output does average total cost reach a minimum?
A)30 
B)90 
C)132 
D)150 
E)ATC declines continuously over the range of output shown.

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.At what level of output does average total cost reach a minimum?
A)30 
B)90 
C)132 
D)150 
E)ATC declines continuously over the range of output shown.

The Following Data Show the Total Output for a Firm