The capital stock is fixed at 50 units,the price of capital is $30 per unit,and the price of labor is $25 per unit. Given the above,if the firm produces 20 units of output,what is average fixed cost?
A)$1.50
B)$50
C)$150
D)$600
E)none of the above

Question

The capital stock is fixed at 50 units,the price of capital is $30 per unit,and the price of labor is $25 per unit.  Given the above,if the firm produces 20 units of output,what is average fixed cost?
A)$1.50 
B)$50 
C)$150 
D)$600 
E)none of the above

Quizplus · Accepted Answer

The Answer of The capital stock is fixed at 50 units,the price of capital is $30 per unit,and the price of labor is $25 per unit.  Given the above,if the firm produces 20 units of output,what is average fixed cost?
A)$1.50 
B)$50 
C)$150 
D)$600 
E)none of the above

The Capital Stock Is Fixed at 50 Units,the Price of Capital