The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assumethe wage per unit of labour is $10 and the cost of the capital is $50.Labour per period012345TABLE 7-3Total output perperiod0103090132150Refer to Table 7-3. The average variable cost when this firm is producing 90 units of output isSelect one:OA 33 cents.OB. 17 cents.OC 68 cents.OD. 98 cents.OE 89 cents.

Capital is fixed and labor can vary. The wage rate per unit of labor is $10 and the cost of capital…

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume the wage per unit of labour is $10 and the cost of the capital is $50.

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital. Assume the wage per unit of labour is $10 and the cost of the capital is $50.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 3.7P

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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
the wage per unit of labour is $10 and the cost of the capital is $50.
Labour per period
0
1
2
3
4
5
TABLE 7-3
Total output per
period
0
10
30
90
132
150
Refer to Table 7-3. The average variable cost when this firm is producing 90 units of output is
Select one:
OA 33 cents.
OB. 17 cents.
OC 68 cents.
OD. 98 cents.
OE 89 cents.

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