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,how much does the 12th unit of output add to the firm's total variable cost?
A)$2.50
B)$4
C)$5
D)$20
E)$40

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,how much does the 12th unit of output add to the firm's total variable cost?
A)$2.50 
B)$4 
C)$5 
D)$20 
E)$40

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,how much does the 12th unit of output add to the firm's total variable cost?
A)$2.50 
B)$4 
C)$5 
D)$20 
E)$40

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