The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit. Based on the above,if the firm produces 60 units of output,what is average variable cost?
A)$5
B)$7.67
C)$20
D)$57.50
E)$2.67

Question

The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit.  Based on the above,if the firm produces 60 units of output,what is average variable cost?
A)$5 
B)$7.67 
C)$20 
D)$57.50 
E)$2.67

Quizplus · Accepted Answer

The Answer of The capital stock is fixed at 5 units,the price of capital is $60 per unit,and the price of labor is $20 per unit.  Based on the above,if the firm produces 60 units of output,what is average variable cost?
A)$5 
B)$7.67 
C)$20 
D)$57.50 
E)$2.67

The Capital Stock Is Fixed at 5 Units,the Price of Capital