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This Phone Center Uses Only Equipment and Workers to Provide

Question 57

Multiple Choice

This phone center uses only equipment and workers to provide service.  Output  (units)   Equipment  Workers  Total Cost  Marginal  Cost  Average  Variable Cost 0.5121143168181111012112\begin{array} { | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Output } \\\text { (units) }\end{array} & \text { Equipment } & \text { Workers } & \text { Total Cost } & \begin{array} { c } \text { Marginal } \\\text { Cost }\end{array} & \begin{array} { c } \text { Average } \\\text { Variable Cost }\end{array} \\\hline 0.5 & 1 & 2 & & & \\\hline 1 & 1 & 4 & & & \\\hline 3 & 1 & 6 & & & \\\hline 8 & 1 & 8 & & & \\\hline 11 & 1 & 10 & & & \\\hline 12 & 1 & 12 & & & \\\hline\end{array}
Assuming equipment costs $10 per unit and each worker earns $5,Average Variable Costs are minimized when output is approximately


A) 3 units.
B) 8 units.
C) 11 units.
D) 12 units.

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